Microsoft-Yahoo deal 'total fiction': Report

Reuters
Posted: Monday, Dec 01, 2008 at 0932 hrs IST
Updated: Monday, Dec 01, 2008 at 0932 hrs IST

Font Size

Feedback

Discuss

Reddif.com Q2 net loss stood at $2.61 mn Carl Icahn resigns from Yahoo! board Microsoft launches Windows 7

London: A report in the 'Sunday Times' said that Microsoft Inc is in talks with Yahoo Inc to buy the US internet company's online search business for $20 billion is "total fiction," according to a key executive cited by an influential US blog.

The 'Sunday Times', which did not cite its sources, said the proposal under discussion involves a complex transaction that would see the US software giant support a new management team to take control of Yahoo.

The team would be led by ex-AOL Chairman and CEO Jonathan Miller and former Fox Interactive Media President Ross Levinsohn, the report said.

But the AllThingsDigital blog, affiliated with the 'Wall Street Journal', quoted Levinsohn as saying the report was "total fiction." Top sources at Yahoo and Microsoft also scoffed at the report, the blog said.

Yahoo spokesman Brad Williams said: "We don't comment on rumors, and all this is a rumor."

A Microsoft spokeswoman declined to comment.

Microsoft withdrew its $47.5 billion buyout offer for Yahoo in May after Yahoo Chief Executive Jerry Yang and his board rejected the bid as too low.

Bid speculation was sparked again earlier this month when Yang announced he was stepping down. Microsoft CEO Steve Ballmer ruled a bid out at the time, but said he was "open" to talks on a deal for Yahoo's search business.

Activist investor Carl Icahn -- who sits on Yahoo's board and increased his stake in the company to 5.4 per cent last week -- reiterated he favored the sale of the search business, according to an interview in the December 1 edition of Barron's.

"Microsoft has said publicly that they are not interested in buying the whole company, and I believe them. But they are interested in doing a deal on search, and we should pursue that," Icahn was quoted by Barron's.

Earlier this year, Icahn threatened to launch a proxy fight against Yahoo and oust Yang in an effort to push the company to accept Microsoft's offer. He later struck a deal with Yahoo and joined its board.

Icahn began amassing Yahoo shares during the company's merger talks with Microsoft.

The 'Sunday Times' said senior directors at Microsoft and Yahoo are understood to have agreed on the broad terms of the deal, but there is no guarantee it will succeed.

Post Comments

Comments: (Limit 3,000 characters)

Name		Message
Email ID
Subject

TERMS OF USE:
The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).

I agree to the terms of use.