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Microsoft tries different approach with Yahoo

Microsoft tries different approach with Yahoo
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Microsoft’s attempt to buy internet search engine Yahoo has taken a new turn. Two weeks after the software giant said it was walking away because Yahoo had rejected its 30 billion euro offer, Microsoft has proposed a new deal to Yahoo.

It involves not a full acquisition but rather a partnership or joint venture for search-related advertising in order to take on Google. This comes after billionaire investor Carl Icahn said he’d try to change Yahoo’s board of directors to force a reopening of the takeover talks.

At the end of last year, Google was the industry leader worldwide in terms of unique visitors – that is regular users of a site – with 47 million more going to its sites that to Microsoft’s and it was 100 million up on Yahoo.

However Yahoo is also talking to Google about outsourcing some Web search ad sales. It is reportedly trying to push through a deal before any renewed approach from Microsoft.

Analysts said that a potential partnership deal between Microsoft and Yahoo could prove to be a stepping stone to an outright acquisition because it was vital for Microsoft to acquire Yahoo on friendly terms.

Yahoo is keeping its options open saying it is evaluating all of the alternatives focusing on maximising value for its shareholders.