News

Reports: Microsoft and Yahoo Actively Negotiating Merger Deal

Shares of Microsoft closed just shy of 7 percent higher on Friday May 2 based on new speculation that Microsoft and Yahoo are now actively negotiating to seal a deal.

Both the New York Times and Wall Street Journal are reporting that the two companies are in serious negotiations, looking to break a stalemate that effectively began three months ago after Microsoft launched its unsolicited bid to acquire Yahoo. Microsoft is arguing that a combination with Yahoo would be the best bet to take on Google

According to both reports however, sources close to the talks caution that a deal may not be struck by end of day today, and the possibility remains that Microsoft could decide to walk away.

What appears to be the biggest stumbling block is the price Yahoo officials believe Microsoft should pay to buy the company.

According to sources quoted by the Wall Street Journal report, Microsoft was now willing to pay as much as $33 per Yahoo share, up from its original bid of $31 per share, but many Yahoo shareholders are looking for an offer in the $35 to $37 a share range. Considering the devaluation of Microsoft's share price since it's inital bid, some are arguing that the reported raised bid to $33 would have valued the deal as high as $35 a share at the time.

About the Author

Ed Scannell is the editor of Redmond magazine.

Featured

  • MIT Finds Only 1 in 20 AI Investments Translate into ROI

    Despite pouring billions into generative AI technologies, 95 percent of businesses have yet to see any measurable return on investment.

  • Report: Cost, Sustainability Drive DaaS Adoption Beyond Remote Work

    Gartner's 2025 Magic Quadrant for Desktop as a Service reveals that while secure remote access remains a key driver of DaaS adoption, a growing number of deployments now focus on broader efficiency goals.

  • Windows 365 Reserve, Microsoft's Cloud PC Rental Service, Hits Preview

    Microsoft has launched a limited public preview of its new "Windows 365 Reserve" service, which lets organizations rent cloud PC instances in the event their Windows devices are stolen, lost or damaged.

  • Hands-On AI Skills Now Outshine Certs in Salary Stakes

    For AI-related roles, employers are prioritizing verifiable, hands-on abilities over framed certificates -- and they're paying a premium for it.