Microsoft Said To Be In Talks With News Corp Over Joint Yahoo Bid

Huffington Post | April 9, 2008 09:42 PM

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The New York Times is reporting that News Corporation and Microsoft are in talks to make a joint bid for Yahoo:

Rupert Murdoch's News Corporation is in talks with Microsoft about joining in its contested bid for Yahoo, according to people involved in the discussions. The combination, which would join Yahoo, Microsoft's MSN and News Corporation's MySpace, would create a behemoth that would upend the Internet landscape.

The talks are a surprising twist in the two-month-long takeover story that began when Microsoft made a $44.6 billion bid for Yahoo.

Yahoo has resisted Microsoft's overtures, contending that it will not negotiate unless Microsoft raises its offer. Yahoo, which wants to remain independent, has been in a desperate search for white knights, holding conversations with Time Warner's AOL and News Corporation.

But Reuters is also reporting late Wednesday that Yahoo and Time Warner are closing in on a deal that would merge Yahoo with Time Warner's AOL division:

The source confirmed a Wall Street Journal story saying Yahoo would receive a cash investment from Time Warner in exchange for a 20 percent stake in the combined Yahoo-AOL business. The deal would exclude AOL's fading dial-up Internet access business and value AOL at about $10 billion.

A deal with Time Warner and AOL would be part of a multi-pronged strategy by Yahoo in which it would outsource Web search advertising operations to Google Inc, the source said.

- fisharefreinds See Profile I'm a Fan of fisharefreinds

well, lets see how long it will be before its all over on the internet. their gonna merge and merge till there is just one or 2 left. I am sick of Microsoft and Apple and sick of just choosing from the few.

Favorite Flag as abusive Posted 05:31 PM on 04/10/2008

- VivaZapata See Profile I'm a Fan of VivaZapata

yeah. none of those companies are strong enough to operate independently. they should also apply for government subsidies while they're at it and maybe an exemption from minimum wage earning.

Favorite Flag as abusive Posted 09:03 AM on 04/10/2008

- midknightryder13 See Profile I'm a Fan of midknightryder13

If Time-Warner merges with Yahoo -- I would urge them to DROP the AOL brand and completely follow Yahoo's model. There are some things Yahoo has done recently (like discontinue 'adult content profiles') that I don't like, but they are INFINETLY preferable to AOL's model. Even TW thinks so. Remember when they merged with AOL the company was renamed 'AOL Time Warner' -- and now it's back to just 'Time Warner'?

Favorite Flag as abusive Posted 05:27 AM on 04/10/2008

- Viper See Profile I'm a Fan of Viper

AOL would sink Yahaoo...

Favorite Flag as abusive Posted 01:22 AM on 04/10/2008

- pigsatthetrough See Profile I'm a Fan of pigsatthetrough

There is enough garbage coming out of Fox, and the WSJ, so why would anyone want to put up with it on yahoo? Gates' MSN internet is not exactly a leader, so add those capabilities, or lack thereof, to a negative effect on yahoo by NewsCorp, and the potential deal doesn't make a lot of sense.

Favorite Flag as abusive Posted 12:35 AM on 04/10/2008

- plutorage See Profile I'm a Fan of plutorage

My yahoo!! is my homepage.

I wonder if this means it will become impossible to use and charmless (if Microsoft takes over) or if I'll have to see pictures of American Idol on my homepage first thing in the morning (if News Corp takes over). In the latter case I'm outta here.

If Microsoft can use yahoo, why not Apple?? They can use that inflated stock price of theirs for something. I guess they are keeping their ammo dry for other things.

Favorite Flag as abusive Posted 11:18 PM on 04/09/2008

- ChristianEcon.com See Profile I'm a Fan of ChristianEcon.com

I believe Google has someone on Apple's board.

Favorite Flag as abusive Posted 03:50 AM on 04/10/2008

- RogerHWerner See Profile I'm a Fan of RogerHWerner

News Corps and Murdoch don't have anywhere near $45 billion dollars to bid on Yahoo. I seriously doubt Murdoch could raise that much even in a leveraged buy out since News Corps just isn't that large of a company. Compared to Microsoft in fact it's small potatoes. News Corps has a market cap of ~59 billion dollars with profits of a mere $2 billion compared to Microsoft's ~$260 billion cap and $~17 billion profits. Microsoft could damn near buy Yahoo with cash on hand but my guess they would offer a combination of stock and cash. Yahoo's entire market cap is $37 billion. Gates must want Yahoo pretty badly undoubtedly to compete against Google. Murdoch had better know that if he gets mixed up with Bill Gates he will eventually get his comeuppance. My guess is the only reason Gates would partner with a guy like Murdoch is that he sees a way to get a part of News Corps otherwise I can't imagine why he'd be bothered..

Favorite Flag as abusive Posted 11:13 PM on 04/09/2008

- instagladiator See Profile I'm a Fan of instagladiator

hmm. Looks like the NeoCons are moving further into the internet?

Favorite Flag as abusive Posted 11:10 PM on 04/09/2008

- Lucille See Profile I'm a Fan of Lucille

instagladiator,

If your referring to Rupert Murdoch's News Corporation, and Microsoft I agree that this is something to be wary of.

Yet I hope that Yahoo can save itself from the clutchesof Microsoft and merge with Time Warner/AOL. I also like the idea of Yahoo merging it' search engine to Google's. I like the formats of both Yahoo and Google, and I'm a Time Warner user to boost so I think this would be a wonderful combination for me as a user.

Favorite Flag as abusive Posted 09:46 AM on 04/10/2008

- ChristianEcon.com See Profile I'm a Fan of ChristianEcon.com

Like John Edwards told us, the powerful don't give up power willingly.

Can't wait for that "fair and balanced" internet. "We report, you decide."

Favorite Flag as abusive Posted 03:53 AM on 04/10/2008

- Lucille See Profile I'm a Fan of Lucille

To ChristianEcon.com:

Induces shuddering does it?

Favorite Flag as abusive Posted 11:18 AM on 04/10/2008