Overture Buy-out on the Cards?

Rumours are rife surrounding Yahoo!'s intention to acquire commercial search partner, Overture. Overture's share price has falled 30% since April due to reported mixed earnings. Google's acquisition of Applied Semantics in April also hit Overture's stock market value hard.

Meanwhile Yahoo! has Yahoo has some $2.2 billion in the bank and a market capitalization of about $14.6 billion. In early April Yahoo! announced that it secured a short-term, $750 million interest-free loan. It hasn't disclosed the purpose of the loan.

In recent months Yahoo!'s stock has climbed about 33 percent - meaning it's acquisition is likely to be favourable to Overture shareholders.

It's clear that an Overture buy-out would set Yahoo! against Google in the race to put search- and keyword-related advertising links across the Web.

Yahoo! boasts an unprecedented ability to anonymously track Web surfers' behavior and deliver contextual ads to them. Combined with Overture's ad-distribution network the duo would be in premium place to take on giant, Google.

Watch this space!
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