Thursday, April 10, 2008

Yahoo-Microsoft Deal Just Got Much More Complicated

In some ways the proposed Microsoft/Yahoo deal has not left the news since it was announced in February, but now there are some new players in the saga. Yahoo and AOL are in talks on a deal that will be worth more than the Microsoft offer, but the question Yahoo shareholders have to ask is what deal is better for us. In my opinion I see this move from Yahoo as a slap in the face to Microsoft, but they are just returning the favor when Microsoft low balled their price/share offer. But don't count Microsoft out yet because they are talking to News Corp concerning a joint deal for Yahoo. This will obviously increase the offer because News Corp will add some equity to deal. If this doesn't work for Microsoft than they might take it to the shareholders because in all actuality this is probably the best deal for them. You can't tell me that the combined power and services of those three is comparable to AOL and Yahoo.

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