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Send to email | Microsoft and Yahoo In Talks: Two Sources Say "Search Only, Not Buyout" in MSFTYHOO | By Silicon el 24-Jun-2008 |
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Yahoo (YHOO) and Microsoft (MSFT) are talking again, say TechCrunch, CNET, and an SAI source.
TechCrunch's sources say the two are talking about a full buyout. One of our sources was highly skeptical of this. A second source said "TechCrunch is 1000% wrong."
CNET thinks they're talking about just a search deal. Our sources agree that this is likely (though one was not even certain the companies were talking).
On a search deal, we would be surprised if Yahoo caved and agreed to talk unless Microsoft substantially boosted the terms of the deal it offered two weeks ago. Even if Yahoo is in full panic mode--which, given the plummet of the stock price and the departure of many senior execs, seems possible--we can't see the company being pathetic enough to welch on its deal with Google and go crawling back to Microsoft without a major excuse for doing so.
If the companies are talking about a full buyout--which our source insists they aren't--it is almost certainly at a price lower than the $33 Microsoft offered a month or so ago. There is no reason on earth for Microsoft to pay that much now that reeling Yahoo has dropped to $21 again. Yahoo shareholders, in fact, would probably be grateful for $25.
As to Microsoft's official response, TechCrunch's Michael Arrington intelligently observes that Microsoft's "No Comment" is a change of position from yesterday.
Microsoft official comment is 'no comment,' which actually contains more information than it appears to. For well over a month, Microsoft has officially been saying they're no longer interested in Yahoo. They didn't say that today.
See Also: Why Yahoo Passed on Microsoft's Search Deal--Full Details!

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| Microsoft and Yahoo In Talks to Avoid Hostile Fight or Bid Withdrawal* | Not "formal" talks, says Kara Swisher, who reported them. Just "informal talks." Which of course are the same thing:
According to sources close to both companies, there are informal
discussions now taking place between Yahoo (YHOO) and Microsoft
(MSFT)-via bankers, board members, shareholders and others close to
both companies-to try to prevent a hostile take [..] Read complete article |  | Published 29-Apr-2008 by Silicon in MSFTYHOO Read 3 times. More hits in  |
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| Report: Microsoft Yahoo Decision After Close* | So reports Kara Swisher, citing sources close to Microsoft (MSFT). Caveat: We checked with some other sources close to Microsoft, who didn't know the first thing about it.
On the employee Town Hall conference call today, Steve Ballmer said he didn't have anything announce about Yahoo (YHOO) today, so we weren't expecting anything this afternoon. But we're all ears.
*UPDATE [..] Read complete article |  | Published 01-May-2008 by Silicon in YHOOMSFT Read 8 times. More hits in  |
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| Former Fed Regulator: Google-Yahoo Deal A Tough Sell To Feds (MSFT, YHOO, GOOG) | | Stifel Nicolaus analyst Blair Levin has broken down the odds that Washington approves one of multiple tie-ups in play right now: Microsoft (MSFT) buys all of Yahoo (YHOO) ; Microsoft buys Yahoo search; Yahoo hands over some of search to Google (GOOG).
Blair's bio makes him worth listening to: He was chief of staff to former FCC chair Reed Hundt for a good stretch of the Clinton administr [..] Read complete article |  | Published 19-May-2008 by Silicon in GOOGYHOOMSFT Read 6 times. More hits in  |
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