Posted July 7, 2008 10:04 am by with 5 comments

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You’ve heard said "keep your friends close, but your enemies closer," now Yahoo wants to test the boundaries of that maxim to the full.

The Times Online is reporting Yahoo’s efforts to partner-up with Time Warner and possibly merge with the media company’s AOL unit–a deal worth as much as $10 billion! However, the clock is ticking…

Jerry Yang, co-founder and chief executive of Yahoo! is threatened on two fronts in the short term.

The first is a hostile break-up approach from Microsoft and the second is a boardroom coup by Carl Icahn, Yahoo!’s major shareholder.

Mr Icahn, the billionaire activist investor, has already nominated himself and other executives to replace the existing Yahoo! board.

He is angry that shareholders were not given the opportunity to vote on a $47.5 billion cash and shares offer from Microsoft in May, and wants investors to vote to remove the board when they meet [on August 1st].

In case you missed last week’s news, you may not realize just how complex the situation has become. You see, Microsoft is also in talks with Time Warner–talks that would see the two companies joining forces to buy and dismantle Yahoo.

Is it just me, or does this seem like an act of desperation on both sides. With Microsoft and Yahoo, both seeking the same sugar daddy, the whole situation is in fear of becoming a soap opera. Oh wait, it already is! 😉

  • Desperation or not, it’s just silly. What would yahoo gain from a deal with AOL? A subscriber base that’s disappearing, a none-player in the search world, and no decent news outlets to speak of?

    Why doesn’t Yahoo just suck it up and write a good deal with microsoft.

    Erik’s last blog post..Wanna Buy Some Blogs?

  • It sure is a soap opera! It would be nice to be able to put all this speculation to bed, and to see a strategic partnership between whatever entities work out successfully. It would be nice to have a really good alternative to Google.

  • I think this whole story will end up with the merge of Yahoo and Microsoft as they are he one who start all of this complexity.

  • I’m not sure that would be a good thing if the two companies were to merge. Right now Google is definitely the top dog, but if yahoo and msn merge I believe they will still be stuck in 2nd place and you will have even less options to choose from.

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