By Reuters
Microsoft has signed a confidentiality agreement with Yahoo, allowing the software giant to take a closer look at Yahoo's business ahead of a potential buyout.
According to a source close to the deal, Microsoft has joined several private equity firms in looking over Yahoo's books and operations, as they explore various options for striking a deal with the struggling internet company.
Yahoo is undergoing a "strategic review," to revamp its business and stagnant revenue growth.
Private equity firms KKR and TPG Capital have also signed confidentiality agreements with Yahoo and are looking to potentially buy minority stakes in Yahoo of up to 20%, with an eye toward eventually taking over the whole company, the source said.
Microsoft, which has a cash pile of $57 billion, is believed to be considering a joint bid for Yahoo and the Microsoft's signing of a nondisclosure agreement with Yahoo occurred "recently," according to the source.
Yahoo and Microsoft declined to comment.
