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: Yahoo Making Eyes at Microsoft, Time Warner


Brief scrutiny of today's headlines.

Google (GOOG) walked away from its partnership with Yahoo (YHOO) after the US Justice Department announced it would sue to block the agreement.

Yahoo's chances for a turnaround look longer without Google's muscle behind its online search ads.

This could rekindle talks between Yahoo and Microsoft (MSFT) or Yahoo and Time Warner (TWX).

Yahoo's stock has dropped about 40% this year. Carl Icahn, a Yahoo board member, has urged Yahoo to sell its search business to Microsoft.

The chances of Microsoft acquiring Yahoo outright appear to be fading. If Microsoft acquires Yahoo's search business, it's likely to wait to see how the souring economy hits both companies. Yahoo is struggling, and may have to act quickly. Still, a fire sale is unlikely, but Yahoo may not be able to get the best price.

In June, Yahoo agreed to let Google, the number-one search company, sell some of the ads shown next to Yahoo's search results. The deal looked like a stopgap measure to give Yahoo some breathing room after it rejected Microsoft's $47.5 billion takeover bid less than a month before.

Google said it ended the deal to avoid a "protracted legal battle." Google has become the heavy hitter in online advertising without regulatory interference. The Yahoo deal caught the attention of federal regulators, and Google's future deals may come under greater scrutiny.

In what's looking increasingly like a long shot, Yahoo might acquire at least a portion of Time Warner's AOL. But it's hard to see the benefit of combining parts of 2 companies that lag behind the competition. AOL operates Platform-A which allows advertisers to display ads across AOL's own sites and creates an opportunity for Yahoo.

Speaking Wednesday in San Francisco, Yahoo founder and CEO Jerry Yang said, "To this day, I believe the best ting or Microsoft to do is to buy Yahoo."

Hmmm, then why didn't Yang sell when he had the chance earlier this year?
< 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