Microsoft Bid for Yahoo Building Momentum

Microsoft (NASDAQ:MSFT) is trying to buy Yahoo (NASDAQ:YHOO) again. According to The Wall Street Journal, Microsoft (NASDAQ:MSFT), Canada Pension Plan Investment Board, and Silver Lake Partners are working together on a bid. The planned deal has Microsoft paying “several billion dollars” and Silver Lake and the CPP Investment Board providing the rest. There are “at least nine private equity firms … studying a potential buyout.”

Yahoo (NASDAQ:YHOO) rejected a $44.6 billion bid (equal to $31 per share then) from Microsoft (NASDAQ:MSFT) in January 2008 and as a result the two firms agreed to a search partnership. That deal was not good for Yahoo (NASDAQ:YHOO) either, its stock dropped from $29 before the rejection to $15 this September.

According to The Wall Street Journal, some private equity firms are saying the deal could be done for between $16 and $18 per share.

More from The Cheat Sheet