Microsoft Executive Tips Yahoo Bid
Not one day after it was reported that Yahoo! and ABC News would be partnering for news online, Microsoft is being tipped as entering bidding for Yahoo! in the near future. This information comes less than a month after our last report that Microsoft was, again, aiming for a bid on Yahoo!, this still not the first time these giants were to collide. All the way back in 2007, Microsoft was thought to be aiming for the same goal and again in 2008 the story persisted. Will Microsoft ever ACTUALLY purchase Yahoo!, or is this a legend that'll never ever prove itself to be true?
Some of those magical mystical "sources close to the situation" said this Wednesday that Microsoft was currently in with a host of other companies putting their 2 cents in on Yahoo Inc, the latter company currently appearing to be at right around $18 billion for market value. These sources speaking with Rueters this week note that Microsoft and these other businesses are already in the works with Yahoo! to take a look at some financial pitch books. The other businesses in this deal are said to include buyout shops Providence Equity Partners, Hellman & Friedman and Silver Lake Partners, Chinese e-commerce giant Alibaba, and Russian technology investment firm DST Global.
News of this possible buyout seems to have had an effect on stocks: Yahoo! shares jumping 9 percent earlier today upon the news breaking to $15.80 in afternoon trading, while Microsoft, comparatively, were doing OK, having risen 3 percent earlier in the day and up 2.2 percent at $25.91 later in the afternoon. Rueters notes that they've got a "high ranking Microsoft executive" on the line as a source, this exec noting that Microsoft may seek a partner to go in on a bid.
This same executive noted the following:
"Yahoo's value hasn't grown in years, and some executives feel we should buy something that is more forward-looking," – Microsoft Executive source for Rueters
Needless to say, not everyone is on board with this possible deal.
[via Rueters]