Microsoft-Yahoo Searching For A Price; Talks Could End Next Week: Reports

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In the latest developments between Microsoft (NSDQ: MSFT) and Yahoo (NSDQ: YHOO), Reuters reports that the two parties are now focused on arriving at a value for Yahoo’s search business, and that discussions could end in the “next week or so.” The story, which quoted an unnamed person familiar with the matter, said in the latest scenario, Microsoft is proposing to buy Yahoo’s search business and take a minority stake in the company after Yahoo sells off its Asian assets. But apparently, the complicated part is in determining a price. The source explained that any amount “would be tied to how revenue-sharing and other deal terms are structured.” Two possibilities: Microsoft may pay Yahoo for search queries and traffic acquisition costs and Yahoo may seek guarantees on the rate Microsoft will pay and a specific time commitment for those rates. The source also said that Yahoo continues to talk with Google (NSDQ: GOOG) about a deal in which it would display Google advertisements alongside its own search results.

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