Prospective suitors for Yahoo
On 11th Feb, Yahoo officially turned down Microsoft’s bid for takeover and there are rumors that News Corp might be the reason for this decision.
Apparently News Corp is talking to Yahoo about buying a 20% stake and this would result in an interesting combination. This deal would result in Yahoo assuming control over MySpace and other news products of Fox interactive media. This in turn will strengthen Yahoo’s current staggering position in the market.
Yahoo would remain a private equity firm or otherwise independent and there would be a cash infusion to complete this deal too. On the other hand, Microsoft is doing its best to close the deal with Yahoo and since Yahoo has turned down its bid. Microsoft is left with only two options: either raise the offer or else plan a hostile takeover.
Sources
1. Lawson, Stephen (2008, Feb, 13). News Corp., Yahoo in talks to fend off Microsoft. Network World, Retrieved Feb 17, 2008, from http://www.networkworld.com/news/2008/021308-report-news-corp-yahoo-in.html
2. Pimentel, Benjamin (2008, Feb, 13). Yahoo sees shift in potential suitors. MarketWatch, Retrieved Feb 17, 2008,fromhttp://www.marketwatch.com/News/Story/yahoo-seen-weighing-alternatives-talking/story.aspx?guid=%7B27469F05%2D2823%2D4CAA%2DA9F1%2D16B7578214AE%7D
3. Helft, Miguel (2008, Feb 14). Microsoft looms over Yahoo talks. The Newyork Times, Business Day, p. C1-C2.