The New York Post is is exclusively reporting that Microsoft is eagerly pursuing acquisition or merger with Yahoo. It seems that many people either want this to happen or are excited about it because everyone from Financial Times to WSJ has jumped into the bandwagon.
NYPost has put the price tag at $50 billion and is saying that Microsoft is so serious about it this time that they have hired Goldman Sachs to work on the deal. Microsoft has suffered from numerous losses at the hands of Google. Firstly Ballmer was pissed off that some of their best people are defecting to Google, then they started loosing on the deals front with Google securing a partnership with AOL and bagging DoubleClick at the expense of Microsoft.
Even after buying Yahoo the combined search market share of the two companies would still trail that of Google’s. The financial markets however are responding positively to the news and Yahoo’s share price is increasing sharply. More analysis on this later in case the talks heat up