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 May 5th

Mon,12:40 PM
Three Ways to Protect your Apple Watch (and One Way Not To)
Thu,8:29 AM
How To Record a Video of Your iPhone’s Screen
Wed,8:45 PM
Why I’m not Buying an Apple Smoke Detector
5:25 PM
ACM 358: The Devil’s Advocate, Apple Scaling, and Tim Cook’s Speeches
5:00 PM
Hulu Is Going to Launch What Was Denied to Apple: A Cable-like Internet Subscription Service
4:53 PM
ThinCharge iPhone 6/6s Battery Case (Black): $56.99
3:10 PM
The Internet of Things is Really a Thing in Germany
2:47 PM
TMO Daily Observations 2016-05-04: The Big HomeKit and Apple Smoke Detector Rant
9:52 AM
FBI’s TOR, VPN-targeted Warrants Amount to Court Sanctioned Mass Surveillance
9:10 AM
OS X: Turning Off Inline Mail Attachments
Tue,9:03 PM
Apple Snags 10% of Time’s 50 Most Influential Gadgets of All Time
6:29 PM
‘IPHONE’ Trademark Fight Illustrates Apple’s Headwinds in China
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!