Wednesday, May 09, 2007

Microsoft keen to takeover Yahoo Inc.

According to some media reports Microsoft is keen to buy Yahoo as the business of networking is growing.

Few months back Microsoft approached Yahoo with the offer of $50 billions, but it was turned down then, but some sources say they have opened the communications again for a possible merger or takeover.

The impact of this deal will be obviously on Google's share of internet business and net advertising to be precise.

Microsoft is a giant compared to Yahoo, but the software major's revenues from online businesses are paltry compared to Yahoo. A possible pact between the two companies could help both, as Yahoo will help power Microsoft's online earnings and in turn will get a lot more MS-backed muscle in return.

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