YHOO jumps on new YHOO/MSFT deal news development
Fight for Yahoo goes on
Yahoo! (YHOO) chief executive Jerry Yang just can’t catch a break. Not only does the Washington Post say the Justice Department has launched an antitrust investigation into the deal Yahoo recently struck with Google (GOOG), the Wall Street Journal reports that Microsoft (MSFT) is taking another run at the beleaguered Internet portal.
Yahoo stock popped 6% in morning trading on hopes that a deal with Microsoft may be reached.
The government is investigating Google’s agreement to provide search advertising for Yahoo, according to the Post report, and will demand documents from Google, Yahoo, and other large Internet and media companies to determine whether the agreement violates antitrust laws.
When the Google deal was announced, Yahoo said that it would undergo a voluntary Justice Department review, and the company contends the request was to be expected. However, the Post, citing sources close to the case, says that the DoJ has launched a formal investigation, which signals that the department may have found some cause for concern. Lawyers tell the paper that the kind of legal requests being issued by the Justice Department in this case are not used for routine matters.
Meanwhile, the WSJ says Microsoft has held discussions with Time Warner (TWX) - the parent company of Fortune.com - and News Corp. (NWS) about working together to effectively carve up Yahoo. In the past, Microsoft has floated the idea of taking Yahoo’s search business while, say, News Corp.’s MySpace or Time Warner’s AOL would take the remains.
This move by Microsoft is the latest in a takeover battle royale that has revealed shortcomings at both companies and raised questions as to whether Yahoo founder Yang is fit to run the company. Shareholders want an agreement of some sort to be reached, but it is clear that both sides remain far apart on what a merger or acquisition might look like. Microsoft has even gone so far as to say that Yang is obstructing any kind of transaction. Activist investor Carl Icahn agrees, saying that Yahoo’s refusal to play ball is hurting shareholders.
Report: Microsoft may bring allies into attempt to buy Yahoo's search business
Silicon Valley / San Jose Business Journal
Microsoft Corp. is gearing up to make a new bid for Yahoo Inc.'s search business and is looking for allies among other media companies, according to reports Wednesday.
The Wall Street Journal said Redmond, Wash.-based Microsoft (NASDAQ:MSFT) had preliminary talks with companies that include Time Warner Inc. and News Corp.
The Journal said a meeting was suggested two weeks ago by Microsoft CEO Steve Ballmer to discuss with Yahoo Chairman Roy Bostock the possibility of involving other partners.
Microsoft canceled the meeting, and Yahoo took that to meant Ballmer's efforts to find a partner weren't successful, the Journal said.
Yahoo earlier rejected a $47.5 billion takeover offer by Microsoft. Later the company said it questioned whether Microsoft was even serious about an all-out merger.
The company's annual shareholder meeting Aug. 1 will include proposals by investor Carl Icahn to remove Sunnyvale-based Yahoo (NASDAQ:YHOO) CEO Jerry Yang and replace the board.
The Journal, citing people familiar with the matter, said representatives for Microsoft have met with Icahn.
Yahoo jumps on report of yet another Microsoft bid
Tech giant said to eye partners for another acquisition offer
SAN FRANCISCO (MarketWatch) - Shares of Yahoo Inc. jumped 7% after a news report said Microsoft Corp. has approached other media companies about a potential joint bid for the Web portal.
10:19am 07/02/2008
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10:19am 07/02/2008
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10:19am 07/02/2008
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10:19am 07/02/2008
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