Wednesday, October 5, 2011

Microsoft Considers Courting Yahoo Once Again

I'm not sure why Microsoft wants Yahoo this badly.  After all, they've got a search and ad seal with them already. 

Maybe it has to do with the international reach of the Yahoo properties or some kind of hidden value.  The question for Yahoo's board is if they make a deal this time around or not.  Since Microsoft's last offer, Yahoo has lost billions in market cap and with its CEO firing debacle, things don't look to get better any time soon.

What's interesting is that Microsoft is looking at a partner to go after Yahoo.  As cash rich as Redmond is, putting down $25 to $30 billion is still a large chunk of dinero.  

Money and valuation aside, core Yahoo guys need to know that if they sell, they have a buyer who can allow Yahoo to flourish and bring benefits to the new company.

So, who would this partner be?  A domestic company?  An international one with better reach like Alibaba?  

It'll be interesting to see where this goes and how it affects mobile.  I know this.  Perhaps, it's time for Jerry Yang to sell out and put his time and energy into something new.  

Source:  Reuters.

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