Saturday, October 22, 2011

Google May Finance an Offer to Buy Yahoo

Google Inc. is considering providing financing for an acquisition of Yahoo! Inc. by another company or a group of bidders, according to a person who has been briefed on the matter told Bloomberg.

The company may opt not to take part in any offer and hasn’t engaged in serious discussions with would-be partners, said the person, who asked not to be identified because the deliberations are private.

Yahoo is weighing strategic options after firing former Chief Executive Officer Carol Bartz, in part for her failure to keep pace with Google in the online advertising market. Google, which is under regulatory scrutiny from governments around the world, may lend its financial support to preserve Yahoo as a rival and bolster competition in the Internet industry, said Greg Sterling, an analyst at Opus Research in San Francisco.

Google, which has $42.6 billion in cash and short-term investments, is considering helping finance other bidders, rather than trying to acquire Yahoo outright, the person said.

Read more at http://www.bloomberg.com/news/2011-10-22/google-said-to-consider-helping-finance-a-third-party-offer-to-buy-yahoo.html

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