Yahoo Escalates Talks With Google

Yahoo Escalates Talks With Google

Yahoo Inc.'s negotiations with Google Inc. have intensified as Yahoo Chief Executive Jerry Yang races to find alternatives to Microsoft Corp.'s unsolicited $44.6-billion takeover offer, a person familiar with the matter said Wednesday.

Yang told Yahoo employees in an e-mail that the board of directors was evaluating "a wide range of potential strategic alternatives" and had "made no decisions" about the Microsoft bid, according to a filing with the Securities and Exchange Commission. He did not offer specifics, but the Sunnyvale, Calif.-based Internet company has hired investment banks Goldman, Sachs & Co. and Lehman Bros. to evaluate options.

Analysts said Yahoo's best hope for maintaining its independence would be a search advertising pact with Google, which generates significantly more revenue for each search query than does Yahoo. Although it could raise antitrust concerns, such a pact could open the door for rival bids, other financing deals or a sweetened offer from Microsoft.

Neither company would comment on the discussions.

No "white knights" have emerged, with News Corp. and others saying they were not interested.

Popular in the Community

Close

What's Hot