Microsoft, the world’s largest software firm, is mulling a $50-billion bid for internet giant Yahoo in one of the biggest takeover deals in the technology space, US media reports said. The deal, if successful, could leave a huge impact on the global it space, including India where both Microsoft and Yahoo carry big brand value and enjoy significant exposure.
According to Wall Street Journal and New York Post, Microsoft, which has a market cap of close to $300 billion, has intensified its pursuit for Yahoo after holding informal talks over the years.
The renewed talks come amid growing threat by search engine and online advertising giant Google for both the companies. In fact, Google replaced Microsoft as the world’s top brand only last month.
The new approach follows an offer Microsoft made to acquire Yahoo a few months ago, the New York Post reported quoting unnamed sources. While Yahoo! had spurned the advances of the Redmondbased software giant in the past, Microsoft is now seeking to re-enter formal negotiations, it said.
The daily said that market sources are putting a roughly $50 billion price tag on Yahoo.
Shares of Yahoo jumped over 15% in early morning trade on US bourses, taking its market value to about $44 billion from $38.2 billion on Thursday. Both Microsoft and Yahoo have significant exposure to India. The expanding number of internet and mobile users in the country is attracting these two companies, who are eyeing businesses in this market to add to their future growth.
Microsoft’s India presence is estimated at around 5,000 employees, which it plans to expand to 7,000 in two years, while Yahoo’s Bangalore development centre just crossed the 1,000 employee mark.
Both Microsoft and Yahoo have announced bullish plans for India, with the latter inaugurating a new R&D facility late last month with seating capacity for 1,600 workers. The US-based search giant said last month it sees India as the next big opportunity and the country was one of its top priorities for future expansion.
The renewed talks come amid growing threat by search engine and online advertising giant Google for both the companies. In fact, Google replaced Microsoft as the world’s top brand only last month.
The new approach follows an offer Microsoft made to acquire Yahoo a few months ago, the New York Post reported quoting unnamed sources. While Yahoo! had spurned the advances of the Redmondbased software giant in the past, Microsoft is now seeking to re-enter formal negotiations, it said.
The daily said that market sources are putting a roughly $50 billion price tag on Yahoo.
Shares of Yahoo jumped over 15% in early morning trade on US bourses, taking its market value to about $44 billion from $38.2 billion on Thursday. Both Microsoft and Yahoo have significant exposure to India. The expanding number of internet and mobile users in the country is attracting these two companies, who are eyeing businesses in this market to add to their future growth.
Microsoft’s India presence is estimated at around 5,000 employees, which it plans to expand to 7,000 in two years, while Yahoo’s Bangalore development centre just crossed the 1,000 employee mark.
Both Microsoft and Yahoo have announced bullish plans for India, with the latter inaugurating a new R&D facility late last month with seating capacity for 1,600 workers. The US-based search giant said last month it sees India as the next big opportunity and the country was one of its top priorities for future expansion.
