Reports: Yahoo & Microsoft Very Close On Search Deal
Jul 17, 2009 at 3:45am ET by Matt McGee
There are several reports tonight that Yahoo and Microsoft are close to consummating a search and advertising deal. 24/7 Wall Street cites an investment banker who says a deal is “imminent.” All Things Digital says an agreement is “down to the short strokes,” but also points out that the companies have been down this road before.
Both reports speculate that the deal will include a large upfront payment to Yahoo — the “boatloads of money” that Yahoo CEO Carol Bartz has said a deal would require — and additional future payments in exchange for Microsoft taking over Yahoo’s search and search advertising business. 24/7 Wall Street cites sources who say Yahoo will get $3 billion upfront.
All Things Digital reports that several high-level Microsoft executives, including Yusuf Mehdi, Satya Nadella, and Dr. Qi Lu, were in the Silicon Valley on Thursday to try closing the deal. Their source also says that this is the end of the road for the long-running talks between Microsoft and Yahoo, and if no deal is reached “we will all finally go our separate ways and be done with it.”
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