• On TechRepublic: Windows 7: Slower to boot than Vista?
January 7, 2009 1:18 PM PST

Report: Investment group teeing up Yahoo deal

by Dawn Kawamoto

Update January 8 at 12:44 p.m. PST: Added Yahoo's response.

A group of investors are reportedly putting together a buyout deal for Yahoo, which would call for Microsoft's financial backing, according to a report in TechCrunch.

Such an arrangement would call for the investment group to pay a premium of approximately 20 percent to Yahoo's current share price, which closed Wednesday at $13 a share, for the entire company.

The investment group would take Yahoo, which would have a $20 billion market cap under those terms, and simultaneously sell its search and marketing business to Microsoft under its previous terms presented in June, according to the report.

The software giant would not only buy these businesses from the investment group, but also provide much of the upfront financing the investors group would need to make the initial purchase. Microsoft would treat the funding as a loan to the investment group, which in turn would provide a fixed payment based on Yahoo's future cash flow, according to TechCrunch.

The report notes, however, that Microsoft has yet to agree to such a proposal.

Yahoo declined to comment on speculation about the deal.

Dawn Kawamoto covers enterprise security and financial news relating to technology for CNET News. E-mail Dawn.
Recent posts from Digital Media
Judge halts BlueBeat's sale of Beatles tunes
EMI to offer instant concert recordings
Sesame Street, Droid get Google's love
Jimmy Wales on what's next for Wikipedia
eBay's Skype sale gets go-ahead with settlement
No Doubt says 'no' to Band Hero depiction
Beatles copyright case down a legal rabbit hole
Getty and Flickr deepen photo-licensing ties
Add a Comment (Log in or register) (5 Comments)
  • prev
  • 1
  • next
by JCPayne January 7, 2009 2:10 PM PST
So they are basically an investment group with the goal of killing off Microsoft's competition and turning the pieces over to Microsoft??? Anyone see Microsoft's stock lately?

Not much better than Yahoo.
http://finance.google.com/finance?q=MSFT
Reply to this comment
by JasonCe January 7, 2009 2:34 PM PST
Please stop your non-sense Microsoft hatred. Get your facts right.

Microsoft stock outperformed both Yahoo and Google, and also Apple stock during the past 12 months. Just use the comparison feature of the web page link you just sent.

I am really tired of you people trying the bash Microsoft by spreading FUD.
by JCPayne January 7, 2009 2:14 PM PST
Yahoo + Microsoft still wont be able to *touch* Google's lead.

- Google up, Microsoft down in November Web searches
http://news.cnet.com/8301-1023_3-10131817-93.html

and the merger will be like another AOL-Time Warner over again.
http://blog.compete.com/2008/02/01/microsoft-yahoo-merger-valuation-impact/
Reply to this comment
by JCPayne January 7, 2009 2:21 PM PST
No doubt Microsoft wants Yahoo's Overture.com business for themselves.
Reply to this comment
by Super2online January 7, 2009 3:04 PM PST
Yeah and lets hope they get it!
(5 Comments)
  • prev
  • 1
  • next
advertisement

FAQ: Buying the right Windows 7 upgrade

Readers still have lots of questions on just which version of the software they need to buy in order to upgrade their PC. CNET News tries to offer some answers.

N.Y. lawsuit details Intel's 'largesse' toward Dell

Attorney General Andrew Cuomo's federal antitrust case filed Wednesday alleges a longstanding symbiotic relationship between Intel and Dell.

About Digital Media

The Web is now the place to go for news and entertainment. Look here for the latest on blogs, music, video, virtual worlds, social networking and more.

Add this feed to your online news reader

Digital Media topics

advertisement
Click Here
advertisement

Inside CNET News

Scroll Left Scroll Right