Not So Fast Yahoo!

Posted by Bull Bear Trader | 5/08/2008 06:35:00 AM | , | 0 comments »

Now that the Microsoft's takeover attempt of Yahoo! is over, Google does not appear to be as willing to move so fast in setting up a partnership with Yahoo!. Apparently, Google executives are now divided as to whether to pursue an advertising deal with Yahoo, and also divided as to what benefit it does for Google to help prop up a competitor. Microsoft is also continuing to move away from the Yahoo! discussion, and is now talking about possibly striking a deal with Facebook - although Facebook is apparently not excited about selling the entire company. Microsoft bought a 1.6% stake in the company last year, valued at $240 million. If their valuation stays the same, Microsoft would need roughly $15 billion to takeover the company, and probably a little more to get the deal done. If offered, it will be interesting to see if Facebook CEO Mark Zuckerberg takes the same approach as Jerry Yang and the Yahoo! board. A $15 billion valuation would be hard to turn-down.

Tickers: YHOO, MSFT

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