Microsoft may be considering a bid for troubled search and content giant Yahoo, a new Reuters report has stated.
The report says Microsoft is now considering a bid alongside a number of other companies, although it is unknown how much these companies are willing to pay. Yahoo currently has a market capitalisation of about $US20 billion.
Sources have indicated these companies include Providence Equity Partners, Silver Lake Partners, along with Alibaba.
If Microsoft were to combine its Bing search business with Yahoo, it would grant the company a significant boost in its market share and may help in its fight against Google.
However, despite the rumours, All Things Digital has claimed Microsoft is only considering a bid and no formal proceedings have been made at all.