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Will Chinese government bid for Yahoo?

The Scotman reports (opens in new tab) that Google and Microsoft are not the only ones going after Yahoo. Apple and Murdoch's News Corp are also potential suitors, according to Nathalie Thomas.

There are also whispers of a potential Chinese takeover with a Government backed bid by Baidu, a real possibility. The cash-rich Chinese Government could use some of its surplus to invest in Yahoo.

On Sunday, China's state-owned aluminium group Chinalco was given access to $120 billion (opens in new tab) to purchase Rio Tinto.

Although Baidu is a NASDAQ-100 listed company, the fact that it is an indigenous Chinese company and has fostered a close relationship with the Chinese government according to Wallace Cheung, a Hong Kong analyst at Credit Suisse Group (via Bloomberg (opens in new tab)).

Now could it be possible that the Chinese government financially backs a group of Chinese-based internet companies - including Alibaba.com, Baidu.com and Sina.com - to take over what has been the US's flagship website for more than a decade?

Apple could also be in the run as could News Corp, although it it very doubtful that they would be able to go in on their own; also both companies are relative new comers when it comes to web properties.

Only Microsoft has the cash to go ahead with such a purchase - both Apple and News Corp had gross profits hovering around $10 billion in 2007 and would have to rely on a significant shares exchange to buy Yahoo.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.