After their recent offer to takeover Yahoo! was rejected, Microsoft has proposed a new search deal with the company. The deal would see Yahoo! give Microsoft control of its search engine and search ad business, in return for an up-front payment and a cut of future ad revenues. News of the deal follows a week of speculation surrounding the dealings between the two companies. Rumours had surfaced suggesting that an investment company was trying to revive Microsoft's takeover deal of Yahoo! with a new structure.
However, during a recent talk in Las Vegas, Microsoft's chief executive Steve Ballmer ended the speculation surrounding a fresh takeover bid of Yahoo!.
According to website Brand Republic, Ballmer told the Fox Business Network: "You certainly shouldn't think we'll go back after Yahoo!. We may try to do other kinds of partnerships with them, but acquisition is a thing of the past."
Reportedly, Microsoft is still keen for a search deal to go through, and Ballmer noted that the best time for that to happen would be during the current management transition at both companies.
He later told the Financial Times: "We had a deal on the table that they didn't choose to take, but I still think that makes sense. For us, the value to the customer, the value to the advertiser, all gets created around the search partnership."
Yahoo! is still searching for a replacement chief executive for Jerry Yang, who stepped down in November last year. Recent reports suggest that the company will announce the replacement near the end of January, and that two of the top-three finalists are said to be women.
