Microsoft is likely to borrow for the first time to finance its $44.6 billion bid for Yahoo, the company's CFO said yesterday, rather than drawing down its reserves to fund the half-cash, half-stock offer. After spending $31 billion on stock buybacks and dividend payouts in 2007, Microsoft has $21 billion cash on hand, Reuters reports. Meanwhile, Yahoo is said to be considering an alliance with rival Google in an effort to thwart Microsoft’s takeover try.
Yahoo founder Jerry Yang is said to be looking to top Microsoft's $31-a-share offer by exploring other opportunities, including revisiting months-old talks with once-bitter rival Google on some form of partnership, reports the Daily Telegraph. Other companies looking to avert a Microsoft deal also have approached Yahoo.