Yahoo want join Microsoft? Is Google pressure?

Microsoft wants to aquire Yahoo for 50 billion $. Probably the largest aquisition in IT history .
Software maker Microsoft Corp. asked search engine operator Yahoo Inc. to re-enter formal negotiations for an acquisition that could be worth $50 billion, the New York Post reported on Friday.

Microsoft (nasdaq: MSFT - news - people ) is feeling increasing pressure to compete with Google Inc. (nasdaq: GOOG - news - people ), which plans to beef up its portfolio with a $3.1 billion buy of online advertising company DoubleClick Inc. Earlier this week, Yahoo (nasdaq: YHOO - news - people ) said it would buy 80 percent of advertising exchange Right Media for $680 million, increasing its stake in that company to full control.

Microsoft currently trails both Yahoo and Google in the lucrative and growing business of Web search.

Google won a search advertising deal with AOL in 2005 that the Post said Microsoft wanted. In addition, Google is developing Web-based software that directly competes with Microsoft Office.

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