5 February 2008 |

Google makes offer to thwart Microsoft

Yahoo! is considering
forming an alliance with Google as an alternative option to Microsoft’s £22.6
billion takeover proposal. Yahoo! management might revisit talks held with
Google several months ago, about forming an alliance, as an alternative option
to Microsoft’s £15 a share bid.

Yahoo! believes Microsoft’s £15 a share bid ‘undervalues the
company’. Other sources said Yahoo! has received a procession of preliminary
contacts by media, technology, telephone and financial companies. But there is
no knowledge of whether any alternative bids were being offered.

On Friday Yahoo! management informed their employees by
means of a memo, which read "We want to emphasize that absolutely no
decisions have been made — and, despite what some people have tried to
suggest, there’s certainly no integration process underway."

Meanwhile, The Wall Street Journal has reported that Google’s CEO Eric Schmidt called Yahoo’s
chief executive Jerry Yang to offer his company’s help in any effort to thwart
Microsoft’s bid.

Tamar Staff Member

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