Incursor

Microsoft has increased its pursuit of buying Yahoo!, by entering formal talks on Friday.

Both companies have been informally talking to each other for years, toying with the idea of challenging Google in web supremacy.

“It’s been talked about for a long time, ever since Google came into the picture.
I can’t imagine a more perfect deal,” said Peter Lobravico, vice president of risk arbitrage sales/trading at brokerage Wall Street Access.

“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.”

Microsoft reportedly made an offer several months ago, but Yahoo! turned it down.

The renewed talks are a sign of Google’s power, the Journal said, and are also a sign of problems over the past year with in-house efforts at Yahoo and Microsoft.

A deal could help Microsoft attract advertisers to its online businesses.