Reports: Yahoo & Microsoft Very Close On Search Deal

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.”

MSN is really being aggressive here and it would be something if they did work out this deal.


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