Is this rumor street chatter or from a friend. It sure makes a lot of sense for MSFT to make a play, but the price has to be better than the last time. A takeout at $35+ is more likely. The remaining value of the Asian assets is close to $10 Billion, give or take a few. Windows 8 adoption has been tepid at best. and there's a big question if Surface will be a hit or not. YHOO has cut some nice deals with content providers, and this will help them transform to a digital media and product company. Someone sold 45,000 contracts of the January 20 Calls today, don't know if it was an opening or closing transaction, but this may indicate that something is going on. Earnings date is 1/28/13 for YHOO.
Bottom line, where will MSFT see growth? The core is solid, but they need some new stuff to maintain historical growth rates in EPS and revenue. (I am long YHOO)
It is a possibility that MSFT might attempt to buyout YHOO once again. The dying of MSFT main revenue generator desktop software and going forward or tech future is MOBILE MOBILE MOBILE-SMARTPHONE, IPOD, TABLET, and their search partnership with YHOO is a good motivator for MSFT to takeover/buyout, merge with YHOO. This time it will be around $33 to $35, as a minimum. MM will not go below $30 and possibly MM will become CEO of MSFT and YHOO combined, the latter will be enticement for MM to go along with it.