Microsoft Considers Making Another Run at Yahoo

Paul Lilly

There's something about Yahoo that Microsoft finds irresistible. Maybe it's the fact that others are interested and it's driving Microsoft crazy, or perhaps it's because Yahoo rejected the software jock's advances three years ago. In any event, new reports are surfacing that suggest Microsoft still wants what it couldn't have and is considering making another bid for Yahoo.

According to Reuters , Microsoft is one of many companies preparing offers for the $20 billion search entity. The other parties don't have same name recognition as Microsoft -- DST Global, for instance -- but they're loaded with cash. Microsoft, while interested, has yet to fully decide if it will submit an official bid, and it's possible it would do so with a partner, Reuters heard from one of its sources. Despite all the chatter, not everyone is convinced Microsoft will make a move, or even should.

"I think it's unlikely because they have been down this path before," Ben Schachter, an analyst with Macquarie Research, told Reuters. "In a lot of ways they've gotten what they want out of it already, with the search deal. I could make a case for a lot of synergies. But it's certainly not a strategic priority in any way."

BusinessInsider thinks the only way the deal makes sense for Microsoft is if it guts a large portion of Yahoo by firing "all the people involved in duplicate corporate functions -- HR, legal, the board of directors -- and then DOESN'T TOUCH ANOTHER THING." The upshot to an acquisition is Microsoft would end up with the most traffic and ad reach, surpassing Google by a significant margin.

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