Gates aims to snap up Google

COMPUTER software giant Microsoft is trying to buy Google, the world’s leading internet search engine, in a deal worth up to 15billion.

The move by Microsoft boss Bill Gates, the world’s richest man, would almost certainly be challenged by U.S.

antitrust authorities.

The two companies have been holding talks about a takeover or merger, according to a report in yesterday’s New York Times.

But, despite the approach, Google is pressing ahead with plans to float on the New York Stock Exchange early next year.

Google, which was launched by two university graduates just five years ago, is believed to be worth between 9.4billion and 15.6billion. Owners Sergey Brin and Larry Page are planning to sell a 10-15 per cent stake to the public, raising around 1.25billion.

Microsoft is likely to continue to pursue the company even after the flotation, according to one executive briefed on the discussions.

But any moves by Microsoft to merge with Google would be closely watched by U.S. antitrust authorities, which launched a massive legal action against the company over its war with software rival Netscape.

Microsoft has been increasingly desperate to get into the search engine business, which attracts millions of users a day for Google. Silicon Valley insiders are comparing Microsoft’s current-obsession with search engines to its fight with Netscape in the Nineties.

Netscape launched the first popular browser, triggering a frenzy of competition from Microsoft, which mobilised its vast resources to produce a rival browser that it tied into its other software.

It eventually overtook Netscape and virtually killed the company. It was partly this episode that prompted a massive antitrust suit by the government against Microsoft that ended two years ago.

Google has already begun the process of talking to investment banks in order to choose which ones will handle its shares offer. Google is believed to favour a so-called Dutch auction in which shares would be offered direct to the public.