Microsoft considering Yahoo bid

Microsoft are reportedly considering a bid for $20bn valued Yahoo, according to unnamed sources. There could, however, be competition from other potential buyers including Providence Equity Partners and Russian firm DST Global.

Yahoo bosses are reportedly preparing pitch books for a number of buyers, and while Microsoft are yet to make a decision, it is understood any bid will be made with a partner rather than alone.

In 2008, Microsoft made an unsolicited bid of $44bn, which was blocked by Yahoo management. The events had consequences for Yahoo's share price, however, which dipped sharply soon after. CEO Jerry Yang was also ousted soon after Yahoo's slump in share price.

Tomshardware.com reports that Microsoft management is divided over whether the company should seek to acquire Yahoo. The search engine company's financial advisers Goldman Sachs and Allen & Co are readying financial information to send to potential buyers, and Yahoo said it had received 'in-bound interest' this year.

Tomshardware also, however, states that an additional report suggested Microsoft have no interest in Yahoo at the top level, and that executives have made it clear that the company will not be bidding.