Microsoft Corporation, a multinational computer technology corporation asked Yahoo! Inc., a global Internet services company, to re-enter formal negotiations for an acquisition that could be worth $50 billion, the New York Post reported on Friday.
The pressure that hits Microsoft comes from the Internet searching and online advertising Google. Recently "The big G" acquired DoubleClick for $3.1 billion and YouTube for $1.65 billion. Also this Year Google launched Docs & Spreadsheets, using Jotspot and Writely technology, a web-based software that directly competes with Microsoft Office.
After the 20 percent strategic investment in Right Media (October 2006), Yahoo! acquired the remaining equity interest in Right Media for approximately $680 million.
After the possible deal report, Yahoo's shares rose 17.7% to $33.20.
"The market is heading higher on the expectation the strong deal environment is ready to continue and profit growth is going to keep going at a nice, high rate," said Charlie Smith, chief investment officer at Fort Pitt Capital Management, in Pittsburgh, Pennsylvania.
Microsoft declined to comment on Friday's merger speculation.
2007 Jeep Compass Accessorized by Mopar Rallye PackageUpdate 1: WSJ reports Saturday that the deal is down.
The $50 billion merger between Microsoft and Yahoo deal, isn't happening, largely because of Yahoo disinterest, the WSJ reports on its fifth article today on this subject.
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