Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Quick Hits: Microsoft-Yahoo Deal Gets Messy


Brief scrutiny of today's headlines.

The saga that is Microsoft's (MSFT) bid for Yahoo(YHOO) keeps getting more interesting.

Microsoft wants to buy Yahoo for its online eyeballs, even though neither firm is really sure how to monetize them. Yahoo, for its part, wants to remain independent, and is scrambling to find another suitor. News Corp. (NWS) had considered an outright bid for Yahoo in response to Microsoft's overture, but passed.

The Wall Street Journal now reports that Microsoft is retooling its strategy to include News Corp. in the acquisition. The Journal also says Time Warner's (TWX) AOL division is speedily crafting a deal to merge its online operations with those of Yahoo. Yahoo hopes to remain independent by finding a strategic partner.

Yahoo is also contemplating a deeper relationship with rival Google (GOOG) to monetize its massive user base. The partnership could be key in Yahoo's Board of Directors' efforts to convince shareholders it still holds value as its own entity.

Regardless of how the deal turns out, the real winner will be the investment banks. Advisory bills will run well into the eight figures. Morgan Stanley (MS) and Blackstone (BX) are advising Microsoft, while Yahoo has Lehman Brothers (LEH) and Goldman Sachs (GS) in its corner.

The credit crunch is starving investment banks for cash; who knows what they'll cook up for this twisted deal.

For more on News Corp., check out Hoofy & Boo's always astute report.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos