Microsoft to Aquire Yahoo Search for 20 Billion… or not?
While the Times of London is reporting that Microsoft is close to announcing a Yahoo search aquisition at 20 billion with a slew of details suggesting they have a lot of inside information, Venture Beat is suggesting this might be a bogus report as they’ve been told by a key player in the deal, Ross Levinsohn, that he knows nothing of this. Although it’s possible Levinsohn is … covering for the deal it seems odd he’d issue a flat denial if there was something to the rumors.
My wild guess is that the Times had a hot tip about one of the dozens of potential deals that are surely percolating around Yahoo as the stock (and thus buyout value) dips to very low levels, and that they ran with it rather than spend much time researching. This has become a major pitfall of “real time” media, where there is increasing pressure to shoot first and hope your story is correct later. Another possibility is that this is a carefully contrived rumor to pump and dump the stock on Monday – without more denials this is likely to spike Yahoo a few bucks or even more Monday morning.
Disclosure: Long on Yahoo
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What Yahoo need in a new CEO? They need someone who is a business and technology person. They also need someone with a strong background in mergers in case Yahoo’s board decides to sell.
The best executive I know with those skills is James T. Kennedy.
Mark
Mark it’ll be interesting to see how much effect the new CEO has on Yahoo’s stock price. I predict not much, but that we’ll see an eventual MS buyout of the whole show for quite a bit less than $31 but probably a lot more than the current $11.
Ergo, buying more Yahoo …
(2) Well you can dream if you want to.