Saturday, April 12, 2008

Where is Yahoo going?

When Microsoft started hunting Yahoo in February, many assumed that the software behemoth would bag the company swiftly and efficiently. Yahoo seemed to be classic weak Web prey, wobbling financially while rival Google continued to dominate the online world. Now, just days after Microsoft's threat to take its modest offer directly to shareholders, Chief Yahoo Jerry Yang is fighting back.

Rumors are flying that Yahoo is teaming up with AOL, the long-suffering Internet division of Time Warner (which is also the parent company of TIME), as a way to stave off an unwanted merger. At the same time, there are reports that Microsoft is buddying up with News Corp. so that the two companies can increase Yahoo's offering price and corner their catch. While many industry watchers still believe that Microsoft will gobble up Yahoo eventually, chances are it will have to pay a lot more for its meal.

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