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Yahoo To Buy AOL
Tagged Under : Microsoft, Yahoo
Microsoft is trying to takeover Yahoo, but it does not look like Yahoo is interested in Microsoft offer as Yahoo has already declined Microsoft offer’s twice. Yesterday Yahoo announced that it’s going to begin a test relationship with Google that would involve the use of Google Adsense Search system. After hearing this news, sources said that there may be a possible partnership between Yahoo and Google so as to strengthen Yahoo’s independence. After hearing this news, Microsoft said that it is already in talk with News Corp to combine resources and takeover Yahoo! This type of acquisition is usually knows as hostile takeover.
Now Yahoo is in talk with Time Warner and its unit AOL. Yahoo wants to buy the whole of Time Warner’s AOL unit so that it could strengthen its position on asking Microsoft for more money. Sources indicate that the deal is valued at 10 billion $ USD and if it is successful Yahoo will receive cash from the deal with Time Warner for a 20% stake in Yahoo-AOL. Yahoo is in a very bad position right now. With no competitive offers/ideas on the table Yahoo is searching for a different leverage unit. If Microsoft successfully forms a deal with News Corp and acquires Yahoo, it would bring together three major online forces: Microsoft’s MSN, News Corp’s MySpace and Yahoo. Yahoo founder and CEO, Jerry Yang said that he will not sell Yahoo to Microsoft or for the matter to any company whose offer does not match up to the company’s expectation. After Yahoo rejected the first offer from Microsoft, Yahoo shareholders bashed Yahoo and even filed lawsuits.
Tags: Microsoft Yahoo
