Report of Yahoo deal is denied
NEW YORK - Yahoo Inc. isn't planning to sell its Internet search business to a group of investors backed by Microsoft Corp., people familiar with the situation said yesterday, denying a report in the Sunday Times of London.
The Times said Microsoft is backing a new management team to take control of Yahoo's search unit following its failed takeover attempt. There are no plans to sell the business, people familiar with the matter told Bloomberg News.
Microsoft, the world's biggest software maker, has been seeking ways to revive its online advertising business as the global recession stifles spending and Google Inc. wins more search users.
The Times said that Microsoft would put up $5 billion to back Jonathan Miller, the former chief executive of AOL, and Ross Levinsohn, a former president of Fox Interactive Media. Miller and Levinsohn would seek to raise an additional $5 billion from institutional investors to buy a stake of more than 30 percent in Yahoo, the newspaper said.
A Microsoft spokesman did not return a call yesterday. A Yahoo spokeswoman declined to comment.
Levinsohn denied the report, according to a blog post by The Wall Street Journal's All Things Digital. Levinsohn and Miller didn't respond to e-mails yesterday from Bloomberg News.
Yahoo has lost more than half of its stock market value this year.Microsoft stock is down 43 percent in 2008. 