Microsoft is resuming its pursuit of search-engine operator Yahoo! that could help it better compete with web search leader Google, published reports said on Friday.
The New York Post reported on Friday that Microsoft has asked Yahoo! to enter formal negotiations for an acquisition that could be worth $50-billion. Yahoo!’s market capitalisation was about $38-billion on Thursday.
Microsoft, based in Redmond, Washington, had no immediate comment on the report, spokesperson Lou Gellos said on Friday.
The Wall Street Journal said executives of the two companies are looking at a merger or some other kind of match-up and said the talks appear to be early-stage discussions. It said the companies explored the idea of combining last year, but the talks led nowhere.
The newspaper reports each cited unidentified people familiar with the situation.
Microsoft is feeling increasing pressure to compete with Google, which plans to beef up its portfolio with a $3,1-billion purchase of online advertising company DoubleClick.
Microsoft currently trails both Yahoo! and Google in the lucrative and growing business of web search.
Google won a search advertising deal with AOL in 2005 that the Post said Microsoft wanted. In addition, Google is developing web-based software that directly competes with Microsoft Office.
The Post story said Microsoft and Yahoo! have held informal talks over the years and said Microsoft’s latest approach to Yahoo! signals increased urgency.
Earlier this week, Yahoo! said it would buy 80% of advertising exchange Right Media for $680-million, increasing its stake in that company to full control. — Sapa-AP