strategery
Yahoo CEO Jerry Yang, who says shareholders shouldn't give corporate raider Carl Icahn control of the company because he has no plan other than to sell to Microsoft, got a boost from an unexpected supporter: News Corp. chairman Rupert Murdoch. Murdoch
told reporters at Allen & Co.'s Sun Valley retreat that "in six months, (Microsoft) will walk away." The crusty mogul added: "There won't be a deal. There's bad personal feelings."
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stocks
The
Wall Street Journal's report that Microsoft is looking for partners to dine on Yahoo's carcass à la carte — a group which includes
Journal owner News Corp., whose media-mogul boss, Rupert Murdoch, has long flirted with swapping MySpace for a chunk of Yahoo —
triggered after-hours trading that boosted Yahoo's stock well above $21 a share, keeping it from dipping below the $19 it was trading at before Team Redmond's initial buyout offer was announced. We can only hope the story was sourced better than
TechCrunch's earlier stock-boosting rumor.
deals
Microsoft's
latest plan: acquire Yahoo's search business and convince either Time Warner or News Corp to snatch up the rest. Microsoft CEO Steve Ballmer and Yahoo board chairman Roy Bostock had a meeting scheduled Monday to discuss the plans, but Ballmer called it off at the last minute, reports the Wall Street Journal. Yahoo sources took the cancellation to mean Ballmer couldn't persuade News Corp's chairman Rupert Murdoch or Time Warner CEO Jeff Bewkes to do the deal. They're probably right about Bewkes. Word has it he's hoping Yahoo will buy Time Warner's AOL, not the other way around. As for Murdoch, he's been willing to hand over MySpace for Yahoo stock
since at least last year, but perhaps like us, he's wondering why anyone would make a move for Yahoo shares
right now, when they don't seem to be going anywhere but down.
(Photo by xamad)
deals
How badly does News Corp. want to move MySpace out the door? During yesterday's quarterly earnings call with analysts, News Corp. president and COO Pete Chernin and chairman Rupert Murdoch said they haven't discussed a merging properties with Microsoft, AOL or Yahoo in quite some time. Like maybe 14 days. Chernin: "I have not had a conversation with Microsoft or AOL in a couple of weeks." Rupert Murdoch "Nor have I."
Silicon Alley Insider doesn't believe the disclaimers, reminding us that at the end of the last quarter, Murdoch denied interest in Yahoo even as he'd ordered a team to make the deal happen.
acquisitions
News Corp. is now discussing a possible joint takeover bid for Yahoo with Microsoft,
according to unnamed sources cited by the Wall Street Journal. Meanwhile, Yahoo is now discussing combining Internet operations with Time Warner-owned America Online as part of a three-fold move to stave off the takeover bid that includes teaming up with AOL, buying back much of the company's stock and running search ads from Google. Analysts quoted in the
Journal still suggest the sale to Microsoft is a
fait accompli, and that Yahoo is just trying to get CEO Steve Ballmer and company to cough up a higher bid for shares.
deals
Rupert Murdoch loves to make trouble for other moguls. Could he stop Microsoft's bid for Yahoo? Wall Street analysts have been asking Murdoch if he would buy Yahoo outright. Never mind that the News Corp. chief doesn't have the cash to outbid Microsoft. Such a straightforward deal would be far too boring for Murdoch to contemplate. Instead, here's a scenario
bruited about by Silicon Alley Insider.
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acquisitions
VC blogger Fred Wilson argues that a Microsoft-Yahoo merger will be bad for users and for the Internet as a whole. "If you think about the Internet, it's a huge distributed network of loosely connected services owned and operated by literally millions. We don't need or want consolidation of services on the Internet," Wilson
writes. But you know who the Microsoft-Yahoo deal is even worse news for? The incompetent executives who landed Yahoo in this pickle in the first place. They're ferociously spinning gullible reporters with rescue fantasies. Here are the five most widespread rumors — and why they're unlikely to happen.
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