Google Firms up Deal to Buy Yahoo Core Business -- Report

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Online search giant Google Inc. has been talking to at least two private equity companies on the possibility of buying Yahoo Inc.'s core business, a person familiar with the matter said over the weekend.

Online search giant Google Inc. has been talking to at least two private equity companies on the possibility of buying Yahoo Inc.'s core business, a person familiar with the matter said over the weekend.

According to the source, Google and its prospective partners were now at the preliminary stages of discussion on the possible financial deal that would help the online search giant to buy its closest rival.

However, the deal is still tentative and Google has no immediate plans to come up with a formal proposal, which may end up not pursuing the bid, the sources added.

Asked about the identity of Google's partners, the sources refused to give further information, saying that it may affect negotiations between the parties.

Many experts said that the deal between two of the world's biggest Internet companied would be a hard-sell to their respective investors, noting that it would likely arouse tough antitrust scrutiny.

Meanwhile, the source said Google is particularly interested in selling some advertisement on Yahoo's websites.

On the other hand, people familiar with the matter said that Microsoft Corp. has also expressed interest in financing part of a private equity firm's bid for Yahoo.

Since firing its chief executive Carol Bartz early September 2011, Yahoo has been in a state of chaos.
 

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