Date: 02-19-2008
Another option in the form of media conglomerate News Corp. was been added to the list of options being considered by Yahoo! to escape from Microsoft's unsolicited takeover bid. According to the proposed deal, Rupert Murdoch's News Corp. could get a 20% stake in Yahoo! with Yahoo! gaining MySpace and other Internet properties along with an undetermined amount of cash. As of now, there is no word from either company about the proposal. But the biggest obstacle for Yahoo! is that its largest investors hold even more shares in Microsoft. Sources say that the joint shareholders are pressuring Yahoo! to hold out for a better deal from Microsoft but to accept the offer ultimately in any case. Reports also suggest that there is an internal split within the company as to whether Microsoft's current $31-per-share bid should be accepted or not. Meanwhile, a deal with AOL is also under consideration as Yahoo! struggles to resist Microsoft.
