The rumors about Yahoo being for sale have been going on this past week, with a number of different companies being mentioned as considering making a bid to purchase the once mighty portal which has seen better days. Even this week, there has been talk of Microsoft putting together a bid to purchase Yahoo. Given that they tried to do that in 2008 and were rebuffed, the price today is a far sight lower for those wanting to purchase the web giant. Now comes word that Google is putting together a group to come up with financing in order to make a bid for the company. This is another of the many rumors which are being reported related to Yahoo.
The latest rumors surrounding Yahoo and Google appear to be more speculative than others. This one has them talking with some possible partners in the deal who would provide financing if they get that far and no formal offer has been made to Yahoo. It seems that there have been some very informal discussions between Yahoo and Google, though no one has been able to confirm this. All of this is based on a Wall Street Journal article which is very light on details. But anything having to do with Google cannot be ignored as they have done the unexpected in the past.
Given past problems which Google has had in their attempt to have an advertising agreement with Yahoo, it seems unlikely that Google would have a large roll in any offer that is made. Back in 2008, Yahoo and Google had signed an advertising search agreement which antitrust regulators decided was not in the public’s best interest. With that past history, Google could only be a limited partner in any offer and deal if there is an expectation of approval by the government.
There are a number of rumored bidders for Yahoo and Microsoft was one of the latest ones who was reportedly looking seriously at Yahoo. They are not looking to purchase Yahoo outright, but rather be part of a partnership group looking at putting together a package as an offer. The Alibaba Group, owned by Jack Ma, is also a serious contender for bidding to get Yahoo, along with others. Recent actions by Yahoo may cause a problem with bidding efforts as they are requiring an NDA which prohibits any one company from talking to another about a Yahoo deal. That makes it all but impossible for groups to come together and put together a package for Yahoo.
Yahoo needs to make some decision about their direction in the next few months as they are beginning to see a brain drain of all their knowledge workers and executives. If they lose too many, they choices will become much more limited than they are today.