Deals
Microsoft's Urge to Merge
Deal or no deal with Yahoo!, the software giant faces pressure to close the gap with Google, and acquisitions are the most likely avenue
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A day before reports that Microsoft resumed talks to buy Yahoo!, the head of mergers and acquisitions at Microsoft said the company is still angling for a big fish in the online market and has been ramping up its ability to absorb large targets.
Microsoft's purchases have been getting bigger of late, but Yahoo (YHOO), with a market value of $42 billion and likely a higher price tag, would be the largest deal Microsoft (MSFT) has ever attempted. Reports on May 4 said Microsoft had considered buying Yahoo or striking up another kind of partnership with the Internet company, but that talks had stalled. The companies had last considered a tie-up in 2006. Microsoft declined to comment.