Google looks at bid for troubled rival Yahoo
Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.
Monday 24 October 2011
Google has piled into the potential auction of rival Yahoo, allying with private equity players to explore a joint bid for the ailing internet giant.
Google's move comes after Microsoft also began examining the possibility of a takeover of Yahoo, in combination with other private equity bidders. Yahoo is exploring its options in the wake of disappointing results, strategic confusion and the firing last month of its chief executive, Carol Bartz.
Both Google and Microsoft are major rivals in the business of selling adverts on the internet, and each believes there could be benefits from combining their own business with Yahoo's network of websites, email services and advertising partnerships. Google in particular is trying to expand its business selling display advertising – the banner adverts and short commercial videos that appear alongside web content – while Microsoft is trying to protect its existing search engine partnership with Yahoo.
The participation of either company in a bid for Yahoo is likely to attract the internet of competition authorities in the US and abroad, analysts said, and it is possible no bid for Yahoo will ultimately be forthcoming.
The strategic review process, though, could provide Yahoo's rivals with a rare chane to pore over its books. Yahoo shares have soared 25 per cent since Ms Bartz's ouster, on shareholder hopes that company will sell itself or break itself up.
Private equity firms which have been linked with a potential deal include Silver Lake Partners. Peter Chernin, the former chief operating officer at Rupert Murdoch's News Corp, is believed to be considering fronting a bid, while Jack Ma, founder of Alibaba, the Chinese web firm which is part-owned by Yahoo, has also expressed interest.
That's some guestlist! Stunning images show huge dynastic wedding between Ultra-Orthodox Jewish families which attracted 25,000 guests
'He was always smiling': Lee Rigby named as Woolwich victim
Heathrow airport reopens runways after British Airways plane 'on fire over London' makes emergency landing
Two bailed after arrest over Woolwich attack Twitter comments
Exclusive: Woolwich killings suspect Michael Adebolajo was inspired by cleric banned from UK after urging followers to behead enemies of Islam
- 1 Pope Francis: Being an atheist is alright as long as you do good
- 2 What, let gays get married? We must be bonkers
- 3 'Something passed underneath us, quite close': Airbus A320 has close encounter with UFO
- 4 Lord of the Sings: Sir Christopher Lee, 91, to release heavy metal album
- 5 Two bailed after arrest over Woolwich attack Twitter comments
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.