Microsoft to Buy Yahoo: Blogger

Says software company has sent a clear signal of intent
By Jonas Oransky,  Newser Staff
Posted Nov 18, 2007 1:24 PM CST
Microsoft Corp. Chief Executive Officer Steve Ballmer, speaks during Tech.Ed, a technology conference at the Great Hall of the People in Beijing, China, Wednesday, Nov. 7, 2007. The Chinese characters...   (Associated Press)
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(Newser) – Microsoft wants to buy Yahoo, blogs Huffington Post’s Henry Blodget—there’s no other way to interpret comments made by a honcho Thursday that the Bill Gates brand plans to up its online search market share from its current 10% to 30%. Do the math, says Blodget: Acquiring Yahoo’s 19% share would “instantly” put Microsoft at about 30% (Google boasts 67%).

Despite effort to expand in recent years, PC World reports, Microsoft’s online division has largely failed—and now loses $1 billion annually. Rumors circulated earlier this year about a Yahoo buy, but were squelched by another big purchase. But investors are buying Blodget’s buzz, as Yahoo stocks gained 6% Friday.