Seismic Tremors ... Again: Microsoft & Yahoo

Via today's Toronto Globe and Mail ...

Microsoft, Yahoo reconsider merger: report
TAVIA GRANT

Microsoft Corp. [MSFT-Q] and Yahoo Inc. [YHOO-Q] may be in early-stage discussions over a merger or partnership of the two companies, the Wall Street Journal reported Friday, citing people familiar with the situation.

The talks would come a year after the companies explored the idea of combining in a bid to compete with Google [GOOG-Q]Inc., the newspaper said. Those talks fell apart, but now the companies seem to have renewed efforts.

Discussions would come as Google has made a string of acquisitions and benefited from a surge in Internet advertising. Earlier this month, Google snapped up DoubleClick Inc. after beating out several rivals with a $3.1-billion (U.S.) bid, a move that will secure its dominance in online search and advertising.

It was that purchase that spurred Microsoft to intensify its pursuit of a deal with Yahoo, asking the company to re-enter formal negotiations, The New York Post reported.

It put a price tag on Yahoo of about $50-billion (U.S.), citing Wall Street sources.

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