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Big Microsoft-Yahoo story debunked
Tech bloggers in the U.S. are roundly dismissing a Sunday Times of London story that has Microsoft in talks to acquire Yahoo's search business for $20 billion.
Problem No. 1: That would be a wacky price -- more than Yahoo's entire market value. Problem No. 2: One of the people purported to be involved in the deal, former Fox Interactive President Ross Levinsohn, says it's simply not true.
The Sunday Times story doesn't cite any specific sources. The whole Yahoo-Microsoft saga was already crazy enough without an injection of fiction, assuming that's what this turns out to be. I've contacted the story's author, Sunday Times business editor John Waples, to see if he can explain his sourcing in more detail. I'll update this post depending on his response.
Microsoft isn't commenting on the report. At the company's shareholder meeting in Bellevue earlier this month, CEO Steve Ballmer reiterated that Microsoft was no longer interested in a full acquisition of Yahoo, but he said a search deal remained a possibility.
The Redmond company has been grasping for ways to boost its market position against Google, and a deal with No. 2 Yahoo would still be the quickest means of gaining ground.
About Todd Bishop
Todd Bishop is co-founder and managing editor of TechFlash. He has covered Microsoft and the technology industry for more than five years, most recently as a daily newspaper reporter and blogger based in Seattle.
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