GLOBAL – OCTOBER 2011: Dominant search Google is looking to buy into its rival multinational internet company, Yahoo! Software giant Microsoft has also joined the fray of potential Yahoo buyers.
Though suffering financially and lagging technologically, Yahoo! is still able to draw around 700 million unique visitors per month collectively – a big reason why Google, Microsoft, and other potential buyers might want to keep Yahoo afloat. Yahoo! News by itself has reported 81.2 million unique visitors for the month of August alone.
Microsoft was reported to have teamed up with private equity firm Silver Lake Partners and the Canada Pension Plan Investment Board to draw up a bid for Yahoo! Google also has had talks with two other private equity firms in order to fund a financial takeover.
However, the ultimate plan for the acquisition appears to be this: a private equity firm will handle the business turnaround process, while a strong financial backer (enter Microsoft or Google) will provide the capital.
Microsoft initially offered a USD 45 M financial aid to Yahoo three years ago, equivalent to a $31 per share value, but was turned down by then-CEO Jerry Yang. The software company has since extended the revenue guarantees from its original offer earlier this week.
Among other groups rumored to have made a move to acquire Yahoo are ventures capitalist Andreessen Horowitz and fellow global internet services network and media company AOL.
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