Microsoft may buy Yahoo!

In this eWeek.com article and Reuters, Microsoft is pursuing a deal to buy Yahoo!, Inc. as a result of increased competition from Google. The two companies have had informal talks over the years about this possibility, but this time it looks a little more serious. According to Peter Lobravico, of Wall Street Access:

“It’s been talked about for a long time, ever since Google came into the picture. I can’t imagine a more perfect deal. You can’t find a stronger buyer than Microsoft and while it would spur a lot of political and regulatory noise, everyone knows in the end that the deal would go through.”

According to the New York Post, Microsoft made an offer a few months ago that was rejected by Yahoo!, and is being advised by Goldman Sachs. The news comes quickly on the heals of Google’s purchase of DoubleClick, Inc. last month for $3.1B.