Microsoft urged to talk to shareholders about bid for Yahoo Search

Although talks about a Microsoft buy-out of yahoo for $47 billion completely fell apart when Yahoo partnered with arch-nemesis Google, Microsoft still has a offer for $9 billion to a minority stake in Yahoo and its search. Yahoo does not want to sell saying that selling its search business would cut off all future growth in the market but Mark Nelson wants Microsoft to take its offer to the investors because he think it clearly presents a superior deal in terms of transaction price. Yahoo still faces a battle against large shareholders about why they did not sell to Microsoft for the overpriced $47 billion price tag.

I personally don’t see what is wrong with selling their search for $9 million. Yahoo now has a long-standing deal with Google and will use Google to provide its search results for the foreseeable future. Yahoo’s search technology is light-years behind Google’s so there’s really no reason for them to hang on to it. The $9 billion price tag is a hard one to pass up to as it is a overbid for Yahoo’s search. And just in case you are wondering, no I don’t own any shares of Microsoft or Yahoo.