Microsoft-Yahoo deal is "total fiction"

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A report by Reuters has suggested that earlier reports of a $20 billion deal between Microsoft and Yahoo are false and that the only possibility is an acquisition of the search division of Yahoo.

We reported earlier that the deal between Microsoft and Yahoo would include the creation of a new management team to be led by ex-AOL chairman and CEO, Jonathan Miller, and former Fox Interactive Media President, Ross Levinsohn. However, the AllThingsDigital blog has quoted Levinsohn as saying the report is "total fiction," and also states that according to sources at both Microsoft and Yahoo, there is no such deal.

According to Reuters, a spokesman for Yahoo said, "we don't comment on rumors, and all this is a rumor."

Carl Icahn who sits on Yahoo's board reckons that a deal may be possible, if it is for the search division alone. "Microsoft has said publicly that they are not interested in buying the whole company, and I believe them. But they are interested in doing a deal on search, and we should pursue that," said Icahn.

Speculation over a deal between Microsoft and Yahoo has been rife since Yahoo Chief Executive, Jerry Yang, stepped down from his position in May. Is the latest deal just another rumour as AllThingsDigital suggest, or is there actually some truth behind it?

(1 reply) #1 Hiveon on 01 Dec 2008 - 15:10

This is the first article I've read that states that it is a rumor. Who knows where this is going.

#1.1 plastikaa on 01 Dec 2008 - 20:00

The rumours were denied yesterday soon after they came out.

(4 replies) #2 Mr. Dee on 01 Dec 2008 - 16:35

I think Microsoft wants the value of Yahoo! to drop to around 5 to 10 billion before they put anything on the table. The additional cash reserve would help with transitioning with some left in the bank for emergencies.

#2.1 GP007 on 01 Dec 2008 - 16:55

It's total value is around $16Billion last I looked. Who knows where it'll go this week.

#2.2 KavazovAngel on 01 Dec 2008 - 17:42

It could rise because of Microsoft's interest in buying Yahoo, but it could drop even further if Microsoft denies its interest in Yahoo right now, thus lowering Yahoo's value even further and making even better situation to buy Yahoo in the next several weeks/months. Its a dirty game.

#2.3 Glendi on 01 Dec 2008 - 19:21

KavazovAngel said,

But in the end Microsoft will get it, probably.

#2.4 RPDL on 01 Dec 2008 - 22:58

Tricksy tricksy Microsoft, playing it coy. They could make their competitors go out of business with a few press releases. I feel bad for yahoo, being played this way.

#3 timmmay on 01 Dec 2008 - 22:31

This is rediculous!

#4 +CrimsonRedMk on 02 Dec 2008 - 01:42

It's all rumors for now: The original story was based on rumors and now this story is rumoring that the rumors weren't true. It makes sense in my head!

(1 reply) #5 boho on 02 Dec 2008 - 09:09

The original Microsoft - Yahoo story was nonsense. It was a Steve Ballmer cronies, flight of fancy, which if it had gone through, would have been ruinous to both companies. For that reason, I had hopped that the deal would go through (back then). Yahoo always has been "a man of straw", their crashing stock price and lay-offs will go on, until they become an irrelevance.

MSN has been around since the early days of the (popular) Internet. The reason why Microsoft search has not worked is because many people are suspicious of Microsoft - plain and simple.

The same goes for Google's browser, and many of their other offerings. The world is changing, and the deliberate manipulation of the economy for the last 10 - 15 years is falling apart. The Banksters and industrialists will keep their wealth, while everyone will be squeezed into varying degrees of poverty. Ron Paul, "Change you really could have believed in" instead of Jimmy Carter's fourth term ;-)

#5.1 Magallanes on 02 Dec 2008 - 18:15

msn search is not popular not because nobody likes microsoft, instead the cause is pretty simple :its s*ck *ss!.

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