Microsoft scraps plans to acquire Yahoo!

Microsoft chief executive Steve Ballmer has confirmed it is no longer in discussions to acquire Yahoo! However, he says Microsoft is now looking to collaborate with the internet company.

Yahoo! rejected Microsoft’s $47.5bn (£32bn) bid earlier this year and later rebuffed an offer for the search engine alone.

However, speculation over a new takeover attempt has mounted, following the resignation of Yahoo! co-founder Jerry Yang (pictured) earlier this week, which renewed hopes over a possible tie-up.

Yahoo! chairman Roy Bostock is currently leading the search for a replacement for Yang and Yahoo! has hired executive search firm Heidrick & Struggles to look for both internal and external candidates. The process is expected to take between four and 12 weeks.

Yang’s resignation has also increased speculation over the possible re-starting of its search advertising partnership with Google, which was axed after regulatory concerns continued to delay its start.

Talks with AOL-Time Warner over a possible merger with Yahoo! appear to be delayed. It is currently in the due-diligence process.

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