SmoothSpan Blog

For Executives, Entrepreneurs, and other Digerati who need to know about SaaS and Web 2.0.

Yahoo Seeks Any Port in a Storm

Posted by Bob Warfield on April 10, 2008

This just in from the WSJ:

Yahoo is closing in on a deal to tie up with AOL.  Supposedly, Time Warner would fold AOL into Yahoo, give Yahoo several billion dollars in cash, and get back a 20% stake in the combined entity.  Yahoo, for its part, would then spend some of it’s own money together with all the Time Warner cash repurchasing its own stock.  Such a deal values AOL at about $10 billion.

This deal, combined with the Google test that involves carrying Google AdSense advertising on Yahoo, is intended to thwart Microsoft’s takeover attempts.

Sounds like serious desperation on Yahoo’s part as they struggle to remain independent.  Personally, as a Microsoft shareholder, I hope it does discourage Microsoft. 


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