Microsoft and Yahoo in Talks, Two Sources Say 'Buyout Not on Table'
Posted Jun 24, 2008 01:45pm EDT by Henry Blodget in Investing, Internet, Venture Capital, M and A, IPOs
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 (presumably the one Yahoo walked away from two weeks ago.) Our sources concur.
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.
If the companies are talking about a full buyout, 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.
