Microsoft and Google Eyeing Yahoo

October 24 00:00 2011

New York, October 24 ( – Many potential bidders, including some technology giants like Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOG), are weighing their options to participate in the bidding to takeover Yahoo (NASDAQ: YHOO). But there is a difference as Microsoft and Google do not actually want to buy or run Yahoo – they only want to lend financial support to private equity firms or others weighing a bid. Yahoo still has a monthly audience of almost 700 million unique visitors.

Microsoft has had discussions with a number of leveraged buyout firms and is willing to provide billions of dollars in financing as part of a consortium led by the private equity firm Silver Lake and the Canadian Pension Plan Investment Board. The group would also receive billions of dollars of bank financing.

Google has also had discussions with two private equity firms about backing a takeover. These discussions are said to be in the early stages. There were no comments available from representatives of Microsoft, Google, Silver Lake and Yahoo.

It is becoming obvious that private equity firms would be interested in taking over Yahoo and turning it around whereas backers like Microsoft and Google would only be supplying capital and reaping the benefits of being associated with Yahoo since it is the biggest online news site with 81.2 million unique visitors in August. Microsoft would also like to integrate its latest acquisition Skype into Yahoo.