Yahoo! rejects Microsoft, turns to AOL?

Filed under: News, Microsoft, Yahoo!, AOL

Yahoo! rejects Microsoft, turns to AOL?

by Brad Linder Feb 11th 2008

As expected, Yahoo! has rejected Microsoft's bid to take over the web portal and its network of services. Microsoft had been offering $44.6 billion for Yahoo!, which the Yahoo! board claims undervalues the company. Microsoft has a few options available. The company could raise its bid price, or it could try to circumvent the board's decision by taking the offer directly to the shareholders.

Meanwhile, Yahoo! is "evaluating all of its strategic options." The rumor du jour is that Yahoo! is in talks with this blog's parent company, AOL. The move makes some sense, as AOL has been remodeling itself in recent years as a company focused on online services and advertising, rather than a dialup and broadband service provider. Yahoo! would bring a lot of expertise to the table, while the two companies would be well positions to compete with the other giants in online software, Google and Microsoft.

Tags: merger, takeover

Reader Comments (Page 1 of 1)

Josh said 10:48AM on 2-11-2008

You forgot to mention that AOL remodeled itself and now looks almost identical to Yahoo. :P

Todd said 11:04AM on 2-11-2008

SEC filing and shareholder message:

http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=293129

...I am ecstatic that Yahoo has grown a pair and wants to fight the Evil Empire, but I am also seriously worried the share holders are going to sue the board of directors right out of their jobs. Lawyer types, people who know the ins and outs of holding a seat on a board, what will happen?

DavidBluth said 11:08AM on 2-11-2008

This is truly surprising and great. I'm pretty damn proud of Yahoo! now. Guess they don't need this help anymore: http://www.5min.com/Video/How-to-Negotiate---Tips-for-Yahoo-5794173

TurboFool said 11:40AM on 2-11-2008

Brilliant idea. I mean it worked wonders for Time Warner, right?

Alan Root said 2:32PM on 2-11-2008

If Yahoo conforms into AOL, I'll not use them ever again. I did not like AOL at all. I'd rather use Microsoft or Google instead.

rohan said 5:36PM on 2-11-2008

"while the two companies would be well positions to compete with the other giants in online software, Google and Microsoft."

Are you crazy?
AOL, if anything, would only push Yahoo closer to obscurity. They would further marginalize Yahoo towards the "granny crowd".

Steve said 5:47PM on 2-11-2008

Everything AOL touches withers and dies.

Brad Linder said 5:48PM on 2-11-2008

Glad to see you still like our site. :)

Amy said 5:24PM on 3-08-2008

I hope AOL and Yahoo defeat the Microsoft Company. I am so annoyed at Microsoft...

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