Microsoft Reportedly To Up Bid For Yahoo In Battle For Search Engine Market Share

by Jacob Cherian    March 26, 2008

  In an effort to rob Google of its leadership in the search engine business, Microsoft is expected to woo Yahoo with a higher bid than the $31-a-share on the table.

  Analysts say despite an initial rebuff from Yahoo, the firm is likely to fall prey to philanthropist and founder Bill Gates' wonder firm.

  Citigroup's Mark Mahaney was quoted as saying in a media report, "We believe that a Yahoo sale to Microsoft - at a price higher than the initial $31 [per share] bid - is the most likely outcome."

  One report by Computer World suggests that while Yahoo is looking for a bailout-bidder to free itself from the clutch of Microsoft's takeover bid, its unlikely to find one that can compete witht the software giant.

  Mahaney told Wired, "While regulatory risk may be material, we continue to believe that limited combined market share allows the deal to go through." Adding, "And we would view Yahoo strategic moves as a forcing function to a higher Microsoft bid."

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