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 October 25th

Fri,5:07 PM
New Uses For Old Power Macs
5:02 PM
Apple Pay is Soaring While Competitors Crash and Burn
1:47 PM
The Camera Lens Mug: $19.99
1:19 PM
TMO Daily Observations: 2014-10-24
11:10 AM
Apple, Nike Teaming Up on Wearable Tech Project
9:37 AM
Kickstarter Project: Mouse Guard LEGO Mini Figures
8:48 AM
OS X Yosemite: Handing Calls Off to Your iPhone
Thu,8:46 PM
Yosemite: How To Fix Safari’s Address Bar
7:32 PM
If Microsoft Made a Smart Watch…
5:45 PM
X-Doria Folio Case for iPhone 6: Awkward by Nature
5:30 PM
ACM 277: Apple Pay, Apple Designs, and iPad as a Laptop Replacement
4:34 PM
Learn Apple’s Swift Programming Language for $19
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!