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Yahoo shareholder urges sale of search to Microsoft

NEW YORK (Reuters) - Ivory Investment Management LP, which owns 1.5 percent of shares of Yahoo Inc, urged the Internet company to sell its search business to Microsoft Corp, saying such a deal could more than double Yahoo's value.

Ivory proposed in a letter to Yahoo's board that it salvage a deal with Microsoft, which had failed earlier this year to buy Yahoo after offering as much as $33 a share. The software company had also tried to buy Yahoo's search business, but was turned down.

Yahoo shares were trading at $12.67 pre-market on Wednesday, up 4 percent from their Nasdaq close on Tuesday.

"We believe a search deal with Microsoft could deliver value to Yahoo shareholders of $24-29 per share, or more than double yesterday's closing price of $12.19," Ivory Managing Partner Curtis Macnguyen wrote in the letter.

"We envision a deal whereby Microsoft would acquire all of Yahoo's search assets and enter into a perpetual agreement for Microsoft to be the search provider for all Yahoo properties," the letter said.

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DiabloRising3596d ago

www.yahoo.com

Search - Playstation 3

NO RESULTS FOUND! WOULD YOU LIKE TO BUY A 360?!

Search - No.

TOO BAD. BUY WINDOWS VISTA NAO!

RedVsBlue3596d ago (Edited 3596d ago )

Don't do it Microsoft. Save that money to buy EA

kewlkat0073596d ago

Well Ms has the edge now, they were offering 44.6 million a couple of months ago..now they have the upper-hand.

Somnus3596d ago

Would be interesting if Yahoo formed a conglomerate to take over Microsoft.

MIA3596d ago

Today was a sad day for Yahoo...layoffs :( Yahoo is a great company to work for.

MS knows they have the upperhand. They are quite arrogant, they still need Yahoo for its Advertisement business.

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