Rumors of Microsoft Seeking Partners to Buy Off Yahoo Make YHOO Shoot Up 6.3%

July 2nd, 2008 at 12:00 am
 


aol news corp microsoft yahoo

I’ll try to summarize it again, Microsoft -> Yahoo -> Icahn -> Google -> Microsoft -> Yahoo.  That probably doesn’t make sense.

Apparently the Microhoo saga won’t go away immediately as we expected.   After a couple of volleys between Microsoft and Yahoo finally ending in Microsoft backing out causing Carl Icahn to launch a proxy battle then some rumors that there may be another possible buyout while Yahoo signed a deal with Google.  Wow! That’s a mouthful revolving Yahoo.   Anyway, just type in "microhoo" in the TJ search bar and you’ll get pretty much everything we ever wrote about the topic since it started.

microhoo timeline

Now, there are again rumors making waves in the blogosphere with the Wall Street Journal as the epicenter, saying that Microsoft is seeking partnerships with other companies in an attempt at another go at a Yahoo buyout.   People familiar with the talks say that Microsoft is in preliminary discussions with Time Warner and News Corp. about a possible partnership to gobble up Yahoo consequently breaking up the pioneer search engine giant.

The proposal of Microsoft to its potential partners split up Yahoo where Microsoft gets the search portion and Time Warner’s AOL and News Corps’ MySpace take what’s left.

However, the talks as mentioned are just preliminary, something they muse about over dinner.  Steve Ballmer, CEO of Microsoft arranged a meeting with Roy Bostock, Yahoo’ Chairman that was scheduled for Monday but did not push through.  It may be possible that Micorosft’s "partners" backed out.

Still, these rumors haven’t hurt anyone.  In fact, news of the possibility of Microsoft going for another buyout has made the YHOO stock jump up a quite a bit early Wednesday by 6.3% to $21.48 a share.  Of course this is swell news for Yahoo since their stock has been its lowest, even lower than when before Microsoft first proposed an acquisition.