Microsoft and Yahoo - the dance continues.
Today Silicon Valley blog TechCrunch cited sources who indicated that Microsoft and Yahoo were discussing a full buyout.
It still remains to be seen if in fact discussions are in the works. Yahoo’s stock price bounced as investors heard the rumors that Microsoft is once-again courting the Internet pioneer.
Neither company would comment on what, if any, talks are under way, but both firms dismissed the notion Microsoft has a renewed interest in taking over Yahoo.
TechCrunch’s Michael Arrington observes that Microsoft’s “No Comment” is a change of position from yesterday. He said,
Microsoft official comment is “no comment,” which actually contains more information than it appears to. For well over a month, Microsoft has officially been saying they’re no longer interested in Yahoo. They didn’t say that today.
We agree. However, the Silicon Alley Insider added,
If the companies are talking about a full buyout, it is almost certainly at a price lower than the $33 Microsoft offered a month or so ago. There is no reason on earth for Microsoft to pay that much now that reeling Yahoo has dropped to $21 again. Yahoo shareholders, in fact, would probably be grateful for $25.
We think this is ridiculous for the reasons stated in the earlier post. Financial prudence and good negotiation skills should prevail now. We also see the “no comment” as progress.
