Microsoft in $20bn Yahoo search deal

Microsoft is in talks to acquire Yahoo’s online search business for $20 billion (£13 billion).The proposal forms the centrepiece of a complex transaction that would see Microsoft support a new management team to take control of Yahoo. But there is no intention of Microsoft tabling another takeover bid for the web giant, after its aborted $47.5 billion offer this summer.It is thought that Jonathan Miller, ex-chairman and chief executive of AOL, and Ross Levinsohn, a former president of Fox Interactive Media, have been lined up to lead the new management team. Senior directors at Microsoft and Yahoo are understood to have agreed the broad terms of a deal, but there is no guarantee that it will succeed.However Yahoo is under intense pressure from its investors after rejecting the offer from Microsoft. This valued each share at $33. Since then Yahoo’s price has tumbled to a low of $9 per share.
http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article5258258.eceBlog calls Microsoft-Yahoo deal “total fiction”
A report in the Sunday Times that Microsoft Inc is in talks with Yahoo Inc to buy the U.S. internet company’s online search business for $20 billion (13 million pounds) is “total fiction,” according to a key executive cited by an influential U.S. blog.
http://uk.reuters.com/article/internetNews/idUKTRE4AT1B820081130

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