The software giant has discussed multiple times the possibility of purchasing shares from rival Yahoo in response to Google, according to the Wall Street Journal.
Citing a “close source,” the shocking article reveals that although the discussions regarding the share purchase have not led to any specific outcomes, top officials at Microsoft are still open to the possibility of collaboration with Yahoo. This solution is being considered due to increasing pressure from shareholders, as Google’s growth is soaring while Microsoft’s growth remains sluggish.
According to the Wall Street Journal, Microsoft and Yahoo have negotiated various forms of alliance over the past year. The potential for Microsoft to sell its entire MSN network to Yahoo in exchange for a corresponding equity stake in the massive web portal has also been put on the table.
Last year, Microsoft had negotiations with Time Warner to acquire shares of AOL Internet. However, Microsoft not only failed to persuade Time Warner but also faced a significant setback when Time Warner decided to sell a 5% stake of AOL to Google.
Previously, Microsoft had hoped that AOL would use the MSN search engine as its default search tool, thereby boosting its nascent paid search business.
The financial results released by Microsoft last week fell short of Wall Street’s expectations as the giant invested heavily in its software services division.
Analysts indicate that Microsoft plans to spend an additional $2 billion in the upcoming fiscal year (starting July 1), with a significant portion allocated to building free web services that support advertising.
Tian Yi
