Microsoft willing to renew talks with Yahoo

Microsoft has announced it is willing to start up discussions again with Yahoo if the search engine company has a new board of directors.

Software company Microsoft withdrew its bid for Yahoo back in May after the two companies failed to reach an agreement.

A combination of the two companies would have helped them compete more effectively with Google, the world’s largest internet company.

In a statement, which followed conversations about a takeover of part or all of the business between Carl Icahn, a major Yahoo shareholder, and Steve Ballmer, Microsoft’s chief executive, the group said it would be interested in discussing two options, buying the search function with larger financial guarantees or purchasing the whole company.

Microsoft said it is interested in commencing talks with a newly-elected board after Yahoo’s shareholder meeting next month.

Following the news, shares in Yahoo increased by more than 10% in mid-morning trading in New York.

Carl Icahn is campaigning to oust Yahoo’s chief executive Jerry Yang as well as other directors. If the US billionaire is successful, it could pave the way for Microsoft to achieve its objective of purchasing the group.

However, Yahoo said selling its search business was not in the best interests of shareholders and added if the offer is serious, we will invite them to make a proposal immediately.

Last month, Yahoo announced a joint advertising and online search deal with Google after it rejected the Microsoft proposal.

Initially, the agreement is to last for 3 years but could last up to 10 years if Yahoo decides to renew.

The partnership, which is worth up to $800 million (£410 million) in additional revenue every year, will see the two companies ads appear alongside some Yahoo search results in the US and Canada.

Story link: Microsoft willing to renew talks with Yahoo