Money Matters - Simplified

Google, PE firms to acquire Yahoo?

Despite being the fourth largest site after Google, Microsoft, Facebook, the company's future remains in doubt.

In a move that may combine the two internet search engines, Google Inc. is in talks with two private equity firms about providing them finances to buy Yahoo Inc., the Wall Street Journal reported Saturday.

The internet search giant Google and would-be partners have talked on the possibility of the deal, but have not had serious discussion or drafted a formal proposal, a source “familiar with the matter” told Journal.

So far there has been no official confirmation from both the companies. The spokesperson for Yahoo said that the company does not comment on “rumor or speculation.”

Google's move to buy Sunnyvale-based internet search engine comes just a month after the firing of its Chief Executive Carol A. Bartz.

Deal to face antitrust scrutiny?
Though the idea of Google helping private equity firms acquire Yahoo sounds interesting, it is likely to draw the attention of antitrust regulators.

But authorities might clear the deal, as in past they approved Google’s purchase of Doubleclick and Admob.

Talking about Google's acquisition, Scott Cleland, author of the book 'Dark Side of Google' said, "Both administrations, the Bush and the Obama administration completely blew it by approving the sale of DoubleClick and Admob,”

“The government created a monopoly through there own ineptitude,” he added.

Yahoo suffering
Google's move to buy Sunnyvale-based internet search engine comes just a month after the firing of its Chief Executive Carol A. Bartz.

Yahoo has been in a mess lately, with high employee attrition rate, and plummeting stock price. Also, over the years, the company has failed to develop tools, apps and service that interest consumers.

Despite being the fourth largest site after Google, Microsoft, Facebook, the company's future remains in doubt.

Speculations are rife that Microsoft has been in talks with private equity firms to buy Yahoo.