BUSINESS BRIEFS
Microsoft still seeking a deal with Yahoo
Associated Press
SAN FRANCISCO — Microsoft Corp. is once again trying to team up with Yahoo Inc. to challenge Internet search and advertising leader Google Inc., although at this point the renewed talks haven't escalated to another attempt to take over Yahoo.
The Redmond, Wash.-based software maker disclosed the revived discussions yesterday without providing any specifics about the nature of the deal being explored except to say it involved bolstering the companies' position in the online search and advertising markets.
In a statement late yesterday, Yahoo said its board is exploring several "value maximizing" alternatives and "remain open to pursuing any transaction which is in the best interest of our stockholders."
Microsoft emphasized that it hasn't resurrected a $47.5 billion takeover bid that its chief executive, Steve Ballmer, withdrew May 3 after Yahoo CEO Jerry Yang — acting on behalf of Yahoo's board — demanded an additional $5.5 billion.
SHOPPERS RARELY SWAYED BY NET
NEW YORK — The Internet is routinely used when making buying decisions, but its influence is small compared with offline channels such as friends and sales personnel, a new study finds.
Yesterday's report from the Pew Internet and American Life Project looked at consumer behavior in purchasing music, cell phones and homes or renting apartments. It found the Internet's role to be indirect.
"The Internet helps people eliminate irrelevant alternatives," said John Horrigan, Pew's associate director. "The Internet may influence the choice modestly but has important consequences in getting better deals and in having a more focused search process along the way."
Only about 10 percent of real estate and cell phone buyers and 7 percent of music purchasers credit the Internet with having a major impact on their decision. And only a small portion — 22 percent of the music buyers and 12 percent of cell phone purchasers — ultimately bought their product over the Internet.
FORECASTERS SEE WEAKER ECONOMY
WASHINGTON — First the good news: The worst of the painful housing slump and the credit crunch might come to an end this year. Now the bad: The economy will weaken further and unemployment will rise.
That's the latest outlook from forecasters in a survey to be released today by the National Association for Business Economics, also known by its acronym NABE. It will take time for any rays of light to poke through the economic clouds, though.
A growing number of economists believe the country is on the brink of a recession or in one already, dragged down by all the problems in housing, credit and financial markets. Now 56 percent of the economists think the economy has started or will enter a recession this year. That's up from 45 percent in a survey in February. If there is a recession, it probably will be short and shallow, economists said.
Forecasters downgraded their projections for economic growth. They now predict the economy, which grew by 2.2 percent last year, will slow to 1.4 percent this year. That's lower than the 1.8 percent growth projected in February. If the new figure proves correct, it would mark the weakest growth since the last recession in 2001.
GM MULLS CHEVY IN SOUTH KOREA
SEOUL, South Korea — General Motors Corp. is considering launching its Chevrolet brand in South Korea to capture a larger share of the country's growing market for imported cars, a company executive said Friday.
The U.S. automaker will make a decision on the move after completing a study by the end of this year, said James H. Raymond, executive director of GM's Asia-Pacific vehicle sales, service and marketing division.
GM Korea currently sells Cadillac and Saab sedans.
South Korea has become more important lately because imported vehicles are now claiming a bigger share of the market, said Raymond.
