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Yahoo! stock surges, Microsoft and Yahoo! talk Merger again?

May 4 2007, 8:01am CDT | by

Yahoo! stock surges, Microsoft and Yahoo! talk Merger again?
 
 

A report that Microsoft and Yahoo! talk merger again on the NY Post sent Yahoo! stock up 17% in pre-trading.

Apparently Microsoft asked Yahoo! to enter formal negotiations.
Yahoo has 12,000 employees and before today had a market value of $32 billion. The streets estimate are that Microsoft would have to pay $50 billion for Yahoo!.If a Microsoft Yahoo! could challenge the search engine dominance of Google is not a sure bet. If you just add the search traffic of Live.com and Yahoo.com it is still not matching by a long shot on what the Google search traffic is.
There is also lots of overlap on what Yahoo! and Microsoft are offering on the web: email, search, portal, video, photo, IM, etc. It would be not easy to create something bigger than just adding them up.
Via this NY Post article. Analysis on the WSJ (subscription).

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.

 

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