The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Yahoo Cozies with AOL to block Microsoft Takeover

Yahoo Cozies with AOL to block Microsoft Takeover

by , 1:10 PM EST, March 5th, 2008

Yahoo is in talks with Time Warner to help protect itself from a Microsoft takeover. The two are discussing a deal that would bring AOL under Yahoo's wing and give Time Warner a minority stake in the combined entity, according to The Wall Street Journal.

Apparently Time Warner is wrapping up a proposal that Yahoo can take to its Board of Directors, and the deal could save the companies about US$1 billion annually.

Microsoft presented Yahoo with an unsolicited buy out offer on February 1 for $44.6 billion, but was rejected when the Internet search and advertising company said the offer undervalued it. Microsoft subsequently rejected Yahoo's snub.

Microsoft stated at the time "The Yahoo response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo's shareholders are provided with the opportunity to realize the value inherent in our proposal."

Should Yahoo strike a deal with Time Warner in time, it will be able to keep Microsoft from launching a hostile takeover attempt. Microsoft, however, is on the prowl for a company it can use to take on Google in the online advertising market, and Yahoo is its best bet, which means the race is on and Yahoo hopes to win this one on its own terms.

Recent Headlines - Updated August 1st

Thu,9:43 PM
U.S. Appeals Court Rules Microsoft Must Turn Over Email Hosted in Ireland
8:27 PM
T-Mobile Q2 Earnings Suggest Uncarrier Model Works
7:41 PM
That Time the iPhone Owner Punched His Mugger in the Face
5:52 PM
The Productive Design Mac Bundle: $39.99
3:05 PM
Basic Tips for Using the Dock and Trash in OS X
1:54 PM
TMO Daily Observations: 2014-07-31
11:18 AM
Russia to Apple: All Your Code Are Belong to Us
10:15 AM
Shazam Song Recognition Comes to the Mac
9:06 AM
Get Ready for 1Password Everywhere in iOS 8
Wed,11:45 PM
ACM 265: Ford goes iPhone and Facebook’s App Breakup
8:25 PM
Brett Domino Explains Pop Music’s Formula
7:03 PM
New iPhones: Now With Less Sapphire
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!