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From Silicon Alley Insider, April 9, 2008:
It's deal night here at SAI, and it just keeps getting better.
Yahoo and AOL are reportedly on the verge of announcing a surprise merger plan, as part of a brilliant Yahoo counter-attack. And now Andrew Ross Sorkin and Miguel Helft of the NYT report that Microsoft and News Corp (NWS) are in talks to make a joint bid for Yahoo:
Rupert Murdoch’s News Corporation (NWS) is in talks with Microsoft (MSFT) about joining in its contested bid for Yahoo, according to people involved in the discussions. The pairing, which would combine Yahoo (YHOO), Microsoft’s MSN and News Corporation’s MySpace, would create a behemoth that would upend the Internet landscape.
If News Corporation throws its weight behind Microsoft’s offer, it could allow Microsoft to raise its bid, putting even more pressure on Yahoo and its shareholders. At the same time, the alignment of Microsoft and News Corporation would remove a possible alternative for Yahoo, leaving it with fewer opportunities to escape Microsoft’s grasp.
The talks between Microsoft and News Corporation are at a sensitive stage, people involved in the discussions said. “There’s a long way to go before anything is definite,” one person involved in the talks said.
Would this combination make sense? Sure it would make sense. Owning MySpace standalone isn't doing Rupert any good--he's getting his clock cleaned by Facebook. MSN's dead in the water. But throw all that together with Yahoo and you could build a pretty honkinging global communications, social networking, and advertising platform.
Rupert's got some cash, too, which means that the two might be able to pay more without infuriating their own shareholders bases.
In any event, at this point, you gotta believe Yahoo's stock is going up.
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Why would AOL and Yahoo be a good combination? AOL has been in a declining state for years, and doubt that is going to change. It just benefits Time Warner by allowing it to realize some value and unload this albatros. Didn't they try to sell it some time ago with no takers? If it is just a bluff to get a higher offer from MSFT, than that seems a bit risky and could easily backfire. Combining with AOL will simply further diminish the struggling Yahoo brand, in my opinion.
How can Microsoft, News Corporation, My Space + MSN take over Yahoo and not be considered a monopoly? I think that the shareholders of Yahoo stock should throw out the Yahoo board members, ratify a merger with Microsoft and call the new company MaGoo... Or maybe that should be Google, Microsoft and Yahoo? No wait a minute...
"In any event, at this point, you gotta believe Yahoo's stock is going up." WTF!? You are pumping your own share price ?? Yahoo is getting very desperate. If you don't take the $31 MSFT is offering, they will buy you for half that in a few years.
If NEWS is in talks with both YHOO and msft, personally I think it's quite unethical.
merger mania - yahoo doesn't seem worth the price. very few mergers end up making shareholders money. this seems like another one of them - i am surprised bill gates is behind this. what a waste of cash - just return it to shareholders!
Microsoft looks more desperate. Their softwares are aging. It is driving the whole ecosystem crazy. I guess we will see lot more surprises pretty soon.
why you guys are wooried abot yahoo stock going up? I boughtyaho roud 22.5 and I dont want Yahoo sell to MSFT at 31. 31 is damn too low
very few mergers end up making shareholders money? What are you talking about? this is not a merger, instead it is a hotile takeover. Go back to look at PSFT and BEAS, and ask their shareholdes how much did they gain.
MSFT can do on their own, may be by replacing all the top level executives, and may be one level below also who are responsible for MSN, including marketing and sales departments. They don't need to spend billions of stock holders money to do this, they just need to spend a fraction of it to beef up MSN and add all sorts of features to it and advertise about it. They need to hire genius type technical people, mathematicians with Phds, like Google did long ago. They have to hire people who can do with a vision, not people who can talk very well.
MSFT please return money to share holders, don't squander it, we are not wealthy like Bill G.
If you gotta believe the stock is going up, why is there no move in after-hours? I'll tell you why, Yahoo is a terrible company. Bad strategy and fundamentals. People hated it at $20, why woulfn't you hate it at this price? I rarely us Yahoo Finance anymore as Google Finance is great. They are almost as bad as AOL....they would be great together. My grandma still uses Yahoo and AOL so there you go.
Yahoo has indicated $40 per share. Murdoch has the ability to make it $45 per share. I'm assuming he's buying a piece of potential future cashflows that make sense. Maybe today it doesn't but in 5 years it may seem that $45 was a bargain for YHOO! Good luck to whatever happens! GOOG-YHOO or AOL-YHOO or MSFT & YHOO Its a win win situation for YHOO
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Judah - Wednesday April 09, 2008 10:39PM EDT
hey, doesn't Yahoo own/operate/partner with Tech Ticker? shouldn't we get some sort of disclaimer as you predict "Yahoo's stock is going up"? i don't really care, but curious