Yahoo reported to ally with Google to repel Microsoft's hostile takeover

According to foreign media reports, sources revealed on Sunday that Yahoo! management was planning to restart the negotiations with Google for a commercial alliance in order to use this to fend off Microsoft's hostile takeover. Sources said that Yahoo! had conducted negotiations with Google regarding an alliance several months ago but these were terminated for some reason. After Microsoft's proposal last Friday to acquire Yahoo! for $44.6 billion (equivalent to $31 per share), Yahoo!'s management is considering restarting the previous negotiations with Google. The source said that Yahoo!'s management believed that Microsoft's offer price of $31 did not reflect Yahoo!'s actual value. Another source said that Yahoo! has already made contact with a number of potential rival acquirers including media, technology and telephone companies. However, it is unclear whether these potential acquirers have formally submitted acquisition requests to Yahoo!.