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 TMO Headlines - Updated August 29th

Sun, 12:00 PM
MGG 620: Backups Deep Dive
Sat, 1:34 AM
Tim Cook Pivots to Play Active Role in Shaping Apple Narrative
Fri, 8:35 PM
WhatsApp's New Privacy Policy is a Big Trust Killer
Fri, 3:35 PM
Soundjump Bluetooth Speaker Has Built-In Portable Charger: $104.99
Fri, 3:21 PM
How to Opt Out of WhatsApp's Facebook Data Sharing
Fri, 1:29 PM
Get Your 80s Synth on with the Stranger Things Soundtrack on Apple Music
Fri, 12:43 PM
The iPad Pro 9.7-inch Keyboard Case for Road Warriors
Fri, 11:00 AM
TMO Daily Observations 2016-08-26: Interview with Fling's Dave Hamilton
Fri, 10:00 AM
Seeing a Folder's Size in the Terminal
Thu, 7:20 PM
The Battery That's Lasted 176 Years
Thu, 6:32 PM
Enough with iPhone Headphone Jack Kvetching
Thu, 6:30 PM
How to Enable Apple Watch Screenshots in watchOS 3
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!