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Microsoft and Yahoo working on $20 billion deal

Neowin · Nov 30, 2008 00:27 EST · Hot! with 31 comments

Microsoft is once again in talks with Yahoo to acquire its search business for $20 billion according to reports from The Times.

The deal comes after two previously failed Microsoft attempts to take over all of Yahoo. Also, Microsoft would support a Yahoo management team with $5 billion. This would be used to fill in several empty positions on Yahoo's team, such as the CEO position Jerry Yang left recently.

The deal would bolster Microsoft's search presence, which has been lacking. Microsoft has also been rumored to be rebranding "Live Search" into "Kumo". After news of this meeting, it is rumored that Kumo will be a mixture of Yahoo and Live Search into one. The deal comes as a saviour to Yahoo also - it is estimated that Yahoo will benefit $2 billion per year under the new deal.