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$20B Yahoo Search Deal 'Total Fiction': Exec

Execs scoff at story of Microsoft dropping $20B on search biz

By Katherine Thompson,  Newser Staff

Posted Nov 30, 2008 8:03 PM CST

(Newser) – A report that Microsoft will buy Yahoo's search business and give two Internet execs a 30% share is "total fiction," one of the execs tells Kara Swisher at AllThingsDigital. Swisher agrees that the $20 billion deal, reported by the London Times, is likely non-existent. After all, board member Carl Icahn would know about it—and his recent purchase of nearly seven million Yahoo shares "would smack of insider trading" if the purchase went through.

"Yahoo has also said in recent days that it is not currently engaged in any kind of talks with Microsoft, even about a more likely search deal," writes Swisher. "At least in this chapter of the drama that has engulfed Yahoo over the last year, believe them."

Jerry Yang, CEO of Yahoo, is stepping down once his replacement is named, ending a rocky reign marked by his refusal to sell the Internet company to Microsoft Corp.
Jerry Yang, CEO of Yahoo, is stepping down once his replacement is named, ending a rocky reign marked by his refusal to sell the Internet company to Microsoft Corp.   (AP Photo/Mark Lennihan, File)
Panelist Ross Levinsohn  attends a Hollywood Radio & Television Society luncheon at the Regent Beverly Wilshire on July 17, 2007 in Beverly Hills, California.
Panelist Ross Levinsohn attends a Hollywood Radio & Television Society luncheon at the Regent Beverly Wilshire on July 17, 2007 in Beverly Hills, California.   (Getty Images)
Microsoft CEO Steve Ballmer addresses the annual Microsoft shareholder's meeting Wednesday, Nov. 19, 2008, in Bellevue, Wash.
Microsoft CEO Steve Ballmer addresses the annual Microsoft shareholder's meeting Wednesday, Nov. 19, 2008, in Bellevue, Wash.   (AP Photo/Elaine Thompson)
Microsoft CEO Steve Ballmer has said that he no longer wants to buy Yahoo, but is still very interested in the online search side of the business.
Microsoft CEO Steve Ballmer has said that he no longer wants to buy Yahoo, but is still very interested in the online search side of the business.   (AP Photo/Elaine Thompson)
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