It seems that Microsoft is going to support the new management team at Yahoo Inc. that will take charge of its web search business, and ink a partnership agreement according to the newspaper Sunday Times.
As per the newspaper, Microsoft will invest up to $5 billion to back the new team comprising, Jonathan Miller, ex chief executive officer of AOL, and Ross Levinsohn, an ex president of Fox Interactive Media.
The newspaper said that Microsoft is seeking for new offers to acquire Yahoo’s search business for $20 billion, in a bid to snare some share in search engine market, which has significantly been lost to Google.
The report suggests that both parties would strike a partnership deal, which would allow Microsoft to manage Yahoo’s search business for 10-years, including an option to buy the search business for $20 billion during first two years.
Levisohn and Miller would require raising another $5 billion from institutional investors in order to acquire 30 percent stake in Yahoo, the newspaper claimed.
Any such deal would help Yahoo, which had recently lost out on a lucrative ad-revenue sharing deal with Google and had spurned Microsoft offers of $47.5 billion earlier this year, to beat the ongoing economic crunch.
However, the report from the newspaper hasn’t been confirmed yet, and Levinsohn has even denied these reports, as per the blog post, “All Things Digital”, from Wall Street Journal.