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Analysts Cynical of Microsoft-Yahoo Deal

Friday, May 04, 2007 9:12:47 PM

Exterior view of Yahoo headquarters in Sunnyvale, Calif., Friday, April 4, 2007. Speculation about a possible Microsoft-Yahoo tie-up met with skepticism Friday from analysts who believe services from the two companies have too much in common. Yahoo shares surged nearly 10 percent following published reports Friday that Microsoft Corp. is resuming its pursuit of Yahoo Inc. in an attempt to better compete with Web search and advertising leader Google Inc. (AP Photo/Paul Sakuma)NEW YORK (AP) - Speculation about a possible Microsoft-Yahoo tie-up met with skepticism Friday from analysts as reports that the deal was already dead began to surface. The reported takeover talks that sent shares of Yahoo Inc. up by 10 percent Friday were no longer taking place, the Wall Street Journal said in an online article citing sources familiar with the negotiations.

Yahoo Inc. shares surged following published reports Friday that Microsoft Corp. had resumed its pursuit of Yahoo to better compete with Web search and advertising leader Google Inc.

Both companies declined comment on the reports.


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