Microsoft is planning to buy Yahoo search business

After months long fruitless efforts to buyout Yahoo, now there is another plan that Microsoft is working out now a days. According to a reliable source Microsoft has offered to buy Yahoo’s search business and so trying to have a portion from the Web initiator.
It has been told that Yahoo will sell its Asian assets like considerable marginal shares in Yahoo Japan and Alibaba group China as a part of this deal, while Microsoft will buy a large portion of the of the rest of the company.

The two companies revealed their talks on Sunday, but they didn’t inform about any term of discussion. As all we know Microsoft had to retreat from a buyout offer to acquire Yahoo in $47.5 billion which comes $33 per share but Yahoo rejected that offer and demanded $37 a share for the settlement of the deal.

If this new deal is completed, it will be such an alliance as may present an alternative mean to compete with the challenger Google Inc. Google enjoys a lion’s share in online ad market and both the companies are struggling to increase their online ad market share.
The new proposal gives ample information about Microsoft’s current approach but Microsoft does not set any value on Yahoo’s search business as explained by the source who was not allowed to say anything on the record as the discussion was highly confidential.

Representatives of both companies didn’t comment on the going convention
On Monday, Yahoo shares fell around 0.87 percent before they closed at $27.68 on NASDAQ while Microsoft fell around 1.8 percent to $29.49.

Sandeep Aggarwal who is an analyst at Collins Stewart opines that Yahoo’s search advertising business is valued around $21 billion, while he puts the value of its international assets at $9.25 billion.

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