Some interesting news that makes the possibility of a Microsoft bid for Yahoo much more likely came to light today.
Redmond issued bonds for the first time to raise $3.75bn. The company's offering was oversubscribed thanks in part to the company's AAA rating from Standard & Poor.
Given that Microsoft is sitting on big cash reserves already the move has heightened speculation that a big buy is in the offing. Top choices seem to be Yahoo or SAP.
Either would be expensive but to my mind SAP looks to be a better bet. The Obama government is looking very hard at antitrust and so a Yahoo deal could come with millions in legal fees to head off action.
SAP on the other hand looks like a solid bet. It would give Microsoft a needed boost in the enterprise market at a time when Google and others are attacking its Office applications.