According to the WSJ, Google was believed to be thinking financing a private equity bid by others to purchase the rival search giant Yahoo. The Wall Street Journal reported that Google had already held discussions with two private equity companies thinking about buying Yahoo's core internet business.
A spokesperson for the actual Mountain View, California-based Google declined to comment on the report of the potential Yahoo takeover. Yahoo remained similarly tight-lipped about the actual takeover deal.
Yahoo's share price had risen in the weeks as much as the report as investors gambled on chances of the organization sell itself or selling certain Yahoo divisions. Around 36 hours prior to the WSJ report, the Yahoo share price stood at $16. 12, getting gained almost 25% since September 6th when Yahoo's BOSS Carol Bartz was fired.
One possible buyer for Yahoo was rumoured to become Chinese internet company, Alibaba. Yahoo owns a 43% share of Alibaba but the Chinese net entreprise was regarded as setting up a +20 billion dollar deal to change the tables and take ownership of Yahoo.
Another possible buyer is considered Microsoft Corp. Microsoft wanted to buy Yahoo back within 2008, bidding 47. 5 billion dollars but then pulling out their offer.
When Carol Bartz was kicked out associated with Yahoo, Tim Morse stepped in as interim CEO as well as chief financial officer. Fuelling speculation about a takeover, Morse recently told business commentators he was couldn't talk about Yahoo's immediate future. It is actually well-known, however, that Yahoo has come under pressure due to falling revenue. While internet advertising has increased, Yahoo offers lost market share, principally to Google and Facebook.
Having a brand that is universally recognised, Yahoo must nevertheless confront the twin facts that Google remains a strong rival and that social networks - mainly Facebook and Twitter - are drawing users from Yahoo's services.
If Google engineers a Yahoo acquisition there will clearly be questions asked about Google's increasing domination from the internet and internet advertising revenue. But that's not to express that Google won't put a deal together and consume their rival online.