News

Reports: Microsoft and Yahoo Actively Negotiating Merger Deal

Shares of Microsoft closed just shy of 7 percent higher on Friday May 2 based on new speculation that Microsoft and Yahoo are now actively negotiating to seal a deal.

Both the New York Times and Wall Street Journal are reporting that the two companies are in serious negotiations, looking to break a stalemate that effectively began three months ago after Microsoft launched its unsolicited bid to acquire Yahoo. Microsoft is arguing that a combination with Yahoo would be the best bet to take on Google

According to both reports however, sources close to the talks caution that a deal may not be struck by end of day today, and the possibility remains that Microsoft could decide to walk away.

What appears to be the biggest stumbling block is the price Yahoo officials believe Microsoft should pay to buy the company.

According to sources quoted by the Wall Street Journal report, Microsoft was now willing to pay as much as $33 per Yahoo share, up from its original bid of $31 per share, but many Yahoo shareholders are looking for an offer in the $35 to $37 a share range. Considering the devaluation of Microsoft's share price since it's inital bid, some are arguing that the reported raised bid to $33 would have valued the deal as high as $35 a share at the time.

About the Author

Ed Scannell is the editor of Redmond magazine.

Featured

  • Microsoft Warns SameSite Cookie Changes Could Break Some Apps

    IT pros could face Web application issues as early as next month with the implementation of a coming SameSite Web change, which will affect how cookies are used across sites.

  • Populating a SharePoint Document Library by E-Mail, Part 1

    While Microsoft doesn't allow you to build a SharePoint Online document library using e-mail, there is a roundabout way of getting the job done using the tools that are included with Office 365. Brien shows you how.

  • Microsoft Previews New App Reporting and Consent Tools in Azure AD

    Microsoft last week described a few Azure Active Directory improvements for organizations wanting to connect their applications to Microsoft's identity and access service.

  • Free Software Foundation Asks Microsoft To Release Windows 7 Code

    The Free Software Foundation this week announced that it has established a petition demanding that Microsoft release its proprietary Windows 7 code as free software.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.