News Corp Brings Yahoo! Alternative To Microsoft Bid (NWS, MSFT, YHOO)
According to reports from the Wall Street Journal, News Corp (NYSE: NWS) and Yahoo! (Nasdaq: YHOO) are in talks to combine MySpace and News Corp's other Internet properties with Yahoo!. The move would help Yahoo! fend off Microsoft's (Nasdaq: MSFT) unsolicited $45 billion takeover bid.
On Monday, Yahoo! rejected Micrsoft's proposal saying the offer substantially undervalues the company and its future growth prospects.
Microsoft said it was disappointed in Yahoo's rejection and said it reserves the right to "pursue all necessary steps" - threatening they could take the offer directly to shareholders.
Yesterday, Legg Mason's Bill Miller, an owner of 80 million Yahoo! shares, said, "we think it will be hard for YHOO to come up with alternatives that deliver more value than MSFT will ultimately be willing to pay."
Microsoft has been targeting a deal with Yahoo! to compete more effectively with Google (Nasdaq: GOOG). Interestingly, Google sells ads at News Corp's MySpace and could favor a News Corp/Yahoo! tie-up, as it may open up access to paid search at Yahoo! for Google.
Create E-mail AlertRelated Categories
Insiders' BlogMergers and Acquisitions
Rumors
Stocks Mentioned
-5.55
+0.14Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
