Google Inc. and Yahoo Inc. are vying to buy Rediff.com India Ltd., the Hindustan Times reported citing an unnamed source.
The paper said the potential takeover could value the Mumbai, India-based news, entertainment, shopping and search site at close to $1 billion.
In addition to Mountain View based Google and Sunnyvale based Yahoo, the paper said Time Warner Inc.'s America On Line unit may be a suitor.
Besides the Web site, Rediff.Com India limited publishes two weekly newspapers aimed at Indian-Americans, India Abroad and India in New York.
Rediff share price has risen recently on speculation that the company may be a takeover target.
It’s possible that Rediff could be in talks, but speculation that it’s Google or Yahoo that is looking to acquire Rediff is exactly that: speculation, and with no basis in fact. On recent history, Google and Yahoo are actually unlikely suitors; although Rediff’s market cap and therefore rough takeover price of $738.9million would put it into the realms of a Google buy, recent history, particularly with Google would suggest otherwise.
Both Google and Yahoo went gun-ho into China with poor results, and of late Google has chosen to partner with existing players as opposed to buying them. Although India isn’t China, both share a similar demography in terms of growth and of being “foreign” in comparison to traditional Western markets where the Google and Yahoo model has worked well.