Microsoft Might buy Yahoo

Reuters is reporting that Microsoft could be in the running to purchase early internet age rivals Yahoo! though speculation is currently rampant about the future of the search firm. The former was set to take over the latter back in 2008, but the deal broke down; now it seems there could be a resurgence in effort.

While considered the noob friendly portion of the search game, Yahoo! still maintains 16% of the market, which is around 6% more than Microsoft’s heavily invested Being search engine. On top of that, the milkshake inspired company has a market value of $20 Billion, meaning the acquisition would have to be quite a chunk of change; though Microsoft of course wouldn’t have too much trouble footing the bill since they have a cash stockpile of around $53 billion.

According to the Reuters inside source, Microsoft higher ups are split on the potential deal. Some believe it would help them dominate AOL out of the industry, but others claim that Yahoo! isn’t worth the investment since it hasn’t shown much potential for growth in a long time.

As well as having the Yahoo! search engine and landing page, the company owns 40% of Alibaba and 35% of Yahoo Japan, making the buyout an interesting one for Microsoft.

Some Analysts are also stating that the acquisition is a bad one, considering the pedigree Microsoft has for such things. Their Skype deal has yet to bear much fruit, with poor integration as of yet. There’s also the deal to buy advertising firm aQuantive for $6 billion back in 2007 that didn’t go anywhere.

As of now this is all speculation, but if it did go through, Microsoft could potentially be back in the search game for real, controlling over a quarter of the market.

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