Microsoft has stated repeatedly that it is no longer interested in Yahoo. However, there have been changes at Yahoo. Jerry Yang has stepped down as the Chief Executive Officer. The stock market has reduced the value of the Yahoo stock significantly. It is not a surprise, then, that there is a report that Microsoft has a renewed interest in Yahoo. The Timesonline is reporting that Microsoft is offering $20 billion for Yahoo search:

“…The proposal forms the centrepiece of a complex transaction that would see Microsoft support a new management team to take control of Yahoo. But there is no intention of Microsoft tabling another takeover bid for the web giant, after its aborted $47.5 billion offer this summer.”

link: Microsoft in $20bn Yahoo deal

One of the important variable in this turbulent relationship between Yahoo and Microsoft is Google. Microsoft needs Yahoo to increase its competitiveness with Google. Despite all Microsoft’s claims of lack of interest, without Yahoo Microsoft has not been able to close the gap in any meaningful manner between itself and Google.

Catherine Forsythe