Microsoft offers to buy Yahoo - Yahoo partners with Google

[Larwee]

This continues to be interesting as there are often new events that help add to the suspense of the final outcome.

It is now being reported that Yahoo and Time Warner are close to a deal where Yahoo would merge with Time Warner's AOL Internet unit.

There is another report that Microsoft and News Corp are negotiating about making a joint bid for Yahoo.

Here are a couple of articles with more details:

Google, AOL and News Corp. re-emerge in Microsoft-Yahoo battle - MarketWatch

Yahoo, Time Warner closing in on AOL deal: source | Reuters

[Linda Buquet]

Sheesh it's like some kind of chess game.
Crazy! Wonder who's gonna win?

[Larwee]

The mystery continues. All types of guesses are being made as to what will happen, but something will be known very soon according to Microsoft.

Microsoft has indicated that they might even walk away from this. However most feel if they do they will come back later. Right now most seem to feel there are three possible things that could happen.

1. Proxy battle
2. Microsoft offers more money
3. Microsoft walks away

If Microsoft walks away now, Yahoo stock would be expected to drop. If Microsoft comes back with a offer later the offer would seem more attractive because of how much Yahoo dropped. At least that is what some are thinking.

The Microsoft board met yesterday but evidently wasn't able to decide what their next step will be, but something is expected in the very near future.

Here are two articles that cover the latest in all of this:

Bloomberg.com: News

Will Microsoft walk away from Yahoo bid? - MarketWatch

[Larwee]

This might make a good movie once everything is finally resolved.

There are now new reports that Microsoft has increased their offer by several dollars, but no numbers have been given to indicate what the new offer is.

Here is an article with more details Report: Microsoft ups offer for Yahoo by 'several dollars': Financial News - Yahoo! Finance

[Larwee]

It looks as if possibly this story is finally over, at least for now. A Microsoft spokesman has announced that Microsoft is walking away and has pulled its bid to buy Yahoo.

Microsoft raised its offer to about $33 a share. Yahoo is reported to have wanted $37 a share.

Bloomberg.com: Worldwide

[Linda Buquet]

Wow, I'm surprised they gave up. Maybe it's part of the game strategy to help Yahoo get more realistic about their asking price.

[Larwee]

This isn't completely over yet.

Microsoft is now being reported to be talking with Yahoo again but this time it is for some type of partnership or joint venture for search-related advertising to take on Google.

However, Yahoo has been in talks with Google for a while about some type of an arrangement with them.

Billionaire investor Carl Icahn has launched a proxy campaign to replace Yahoo's board. He owns 3.4 percent of Yahoo stock and has some support from a few other large Yahoo investors.

A lot is going on with this. Here are some articles with more details:

http://blogs.reuters.com/mediafile/2...ck-with-icahn/

Microsoft, Yahoo! Resume Talks - Forbes.com

PC World - Business Center: Analysts: Microsoft Likely Eyeing Yahoo Search Assets

[PosterManiac]

It is only a matter of time in my belief before Yahoo gives in and accepts the offer. I mean who else in the Internet world will give more than Microsoft are offering! I give it to end of July and then Yahoo will be owned be owned by Microsoft. This is definatly a forum to keep my eye on. Thanks!

[Larwee]

Yahoo has reached a deal to hire Google to handle some of its advertising sales that Yahoo says will increase its revenue by at least 800 million dollars during the first year of the agreement.

Yahoo's advertising partnership with Google would not start before late September of this year at the earliest because both Yahoo and Google have voluntarily agreed to wait at least that long to allow a government review.

Under the deal, either Yahoo or Google could end it if there is a change in the control of Yahoo. If it happens within 24 months, Yahoo would be required to pay Google a termination fee that could be as much as 250 million dollars.

There are more details and these articles have them:

Yahoo partners with Google - CNN.com

As Microsoft Walks Away, Yahoo Enters Google Ad Pact - WSJ.com

http://www.nytimes.com/2008/06/13/te...y/13yahoo.html

Google, Yahoo! Ink Search Pact