Content|November 24, 2011| Author: James Johnson|Tags: ,

Microsoft Signs Non-Disclosure Agreement With Yahoo, Considers New Acquisition Bid

Microsoft and Yahoo Logos

Microsoft this week jumped into the Yahoo! acquisition game by signing a non-disclosure agreement that allows the company to examine Yahoo!’s core business finances and other important documents that could lead the company to a bid.

According to reports Microsoft has been meeting with various private investors to create a multi-billion-dollar deal that would allow them to purchase the company’s U.S. and Asian assets.

In 2008 Microsoft attempted to buy Yahoo! but that deal was rejected and Microsoft went on to found Bing.com which has grabbed an increasing amount of internet traffic over the last several years. During their bid Microsoft offered $33 per share or nearly $47 billion for the company, a purchase price that has long since passed.

While Yahoo! is worth only a fraction of what Microsoft was willing to pay in 2008 the company still offers a valuable audience that includes more than 700 million monthly visitors while their content websites are some of the top in the industry including Yahoo! News, Yahoo! Finance and Yahoo! Sports.

According to 9News:

If Microsoft were to succeed in buying Yahoo! it is believed it would spin off the company’s Asia assets, which include online commerce titan Alibaba.

Alibaba is 43 per cent owned by Yahoo! and is considered one of its best assets, but the Chinese firm reportedly feels it has outgrown its US partner.

The relationship between the two companies was strained earlier this year in a dispute over Alibaba’s online payments platform Alipay.

In the meantime Yahoo! is still without a permanent CEO after firing Carol Bartz and questions still remain as to how the company can turn their massive audience into a profitable business as the company struggles with premium advertising sales and other innovation based issues.