The New York Post is reporting that Microsoft is
pursuing a merger with Yahoo [1], and has requested formal talks to discuss a deal. These rumors have circulated before, but the market seems to be taking the report seriously. Shares of Yahoo soared 17 percent in early trading.
The implications of a Microsoft-Yahoo combination are huge, and any deal would reportedly be in the $50 billion range.
Yahoo’s data center network [2] includes more than 20 facilities, and any combination with Microsoft’s infrastructure would be a significant component of a joint strategy to take on Google, which makes no secret of its belief that its data centers provide a competitive advantage.
Is it for real, or just the rumor mill run rampant? Time will tell.
Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.
Article printed from Data Center Knowledge: http://www.datacenterknowledge.com
URL to article: http://www.datacenterknowledge.com/archives/2007/05/04/microsoft-yahoo-deal-rumors/
URLs in this post:
[1] pursuing a merger with Yahoo: http://www.nypost.com/seven/05042007/business/bills_hard_drive_business_peter_lauria_and_zachery_kouwe.htm
[2] Yahoo’s data center network: http://www.datacenterknowledge.com/archives/yahoo-index.html
[3] Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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