Yahoo officially turned down Microsoft’s US$31 a share offer as expected this morning, with some reports suggesting the Web services company is trying to hook up with Google or even AOL.
This is far from a strategic move or even a realistic merger and acquisition scenario.
A proposed merger between Yahoo and AOL is nothing more than a negotiating ploy on the part of Yahoo management. Nothing wrong with that as it’s the company’s duty to extract the most money possible from Microsoft, er, the highest bidder.
Even if by some miracle AOL was to take over Yahoo, the merger does nothing to plug the many holes in Yahoo’s portfolio such as search marketing.
But make no mistake about it – an AOL tie-up won’t fetch Yahoo the US$44.6-billion valuation Microsoft has placed on Yahoo. It will probably help Yahoo shareholders get more money from Microsoft which may finally give long-suffering folks reason to yodel again.
There are not as many possible scenarios as Yahoo would like shareholders and Microsoft to believe there are. Nope – this takeover "battle," such as it is, for Yahoo will fizzle out quickly and pathetically.
Microsoft will buy Yahoo but the price will likely be in the US$34 to US$37 a share range though some suggest US$40 per share is a more appropriate price. Let’s split the difference guys and get this Yahoo-Microsoft show on the road.
Watch for Microsoft to reup this week if not next week.
No Comments on “Yahoo-AOL tie up? Not in this century.”
You can track this conversation through its atom feed.