Wow, this is an very interesting news. Microsoft is going to buy Yahoo? But is it going to happen? Well, there are several rumours or speculations behind this at the moment.

You will find some information at Reports: Microsoft Eyeing Deal to Buy Yahoo

“Microsoft Corp. has stepped up its pursuit of a deal to buy Yahoo Inc., two newspapers reported on Friday, as the two companies reenter talks to strike a deal amid huge growth from rival Google Inc. Yahoo shares jumped 14.6 percent to $32.20 in electronic trading on Friday, while Microsoft shares fell 1.4 percent to $30.53. The two companies have held informal deal talks over the years. But the latest approach comes as Microsoft seeks to ink a deal in the wake of Google’s expansion. ‘It’s been talked about for a long time, ever since Google came into the picture. I can’t imagine a more perfect deal,’ said Peter Lobravico, vice president of risk arbitrage sales/trading at brokerage Wall Street Access. ‘You can’t find a stronger buyer than Microsoft and while it would spur a lot of political and regulatory noise, everyone knows in the end that the deal would go through.’”

The New York Post reported early on Friday that Microsoft made an offer to buy Yahoo a few months ago, but Yahoo spurned the advances. The paper, putting a price tag of $50 billion on a Yahoo takeover, said that deal discussions continue between the two companies. Investment bank Goldman Sachs is advising on the process, the paper said. The bank declined to comment.

Apparently, this is another strategy taken by Microsoft to compete with Google in the web online business. Microsoft has tried to compete in the burgeoning online search and Web advertising categories on its own but made little progress as Google has made massive gains as the industry leader, according to the The Wall Street Journal.

Let see how will the deal between Microsoft and Yahoo go on.

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