Yahoo May Consider Google Alliance

Reuters reported that Yahoo Inc would consider a business alliance with Google Inc as one way to rebuff a $44.6 billion takeover proposal by Microsoft, citing a source familiar with Yahoo's strategy.

 

Yahoo management is planning to resume the negotiations with Google it had several months ago on an alliance as an alternative to Microsoft's bid, that source said. According to two sources, Yahoo considers that $31 a share is a proposal that underestimates the company.

A second source close to Yahoo said it had received a procession of preliminary contacts by media, technology, telephone and financial companies. But the source said they were unaware whether any alternative bid have been made.

"We want to emphasize that absolutely no decisions have been made - and, despite what some people have tried to suggest, there's certainly no integration process underway," Yahoo leaders wrote in a memo to Yahoo employees.

Yet, Yahoo's efforts to find an alternative bidder could simply be a measure to pressure Microsoft to boost its bid, which valued Yahoo at $44.6 billion when first announced on Friday, concludes Reuters.