Yahoo Courts AOL; Microsoft Declares War
After claiming that Microsoft’s offer to buy Yahoo was too soft, Yahoo has begun wooing (once again) Time Warner’s AOL.
Initial reports in the Wall Street Journal indicate that Time Warner (TWX) would fold AOL into Yahoo and infuse cash into the company in exchange for a 20% stake of the combined company. In return, Yahoo would repurchase several billions of its shares in the mid-$30 range.
Of course, Microsoft (MSFT) hates to lose. After its failed bid for about $31/share, Microsoft is none too happy that Yahoo is looking elsewhere. For Microsoft, this means war. Microsoft is now reportedly courting News Corp. (NWS) to offer a joint bid for Yahoo. Microsoft has already threatened to force a Yahoo Board vote on its prior offer and has imposed a deadline for a response. Yahoo has not publicly responded to the offer.
To shore up its value, Yahoo is also considering partnering with Google (GOOG) for advertising. The company has announced that it will run a preliminary two-week test to run Google’s search advertising.
Gosh. It’s all so very junior high of the big tech giants. It’s as if Microsoft wants to take Yahoo to the prom - but Yahoo wants to go with anybody but Microsoft. Time Warner is kind of the popular girl who is desperately trying to get Yahoo together with someone else in exchange for prom queen votes. And Microsoft is just the bitter outsider with lots of money who will do anything to ruin the dance. Keep watching… This is getting good.
Tags: AOL, Microsoft, Time Warner, YahooRelated Stories
POSTED IN: Acquisitions, Corporate, Technology
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