Rupert Murdoch has already made it clear he doesn’t have the money to buy Yahoo Inc. all by himself in light of Microsoft’s bid, but a joint venture may be on the cards. More specifically, he isn’t adverse to having a chat with Microsoft about going after the search company together.
When asked about a possible deal with Microsoft, Mr Murdoch said, “Depends on the deal“. He went on to say during an international affairs group talk at the Atlanta Council that:
I certainly can’t afford to bid against Microsoft (for Yahoo) … Is Google really going to get control of the advertising world, and should Microsoft be supported in their attempt to try and stop that?
Microsoft has already set a deadline of Saturday for Yahoo to accept its bid for the company. The US$31 a share Microsoft has offered may have to be increased however, when Yahoo’s financial results are revealed.
Meanwhile, Yahoo is taking action to try and find alternatives to a Microsoft takeover, including having talks with AOL over a merger and experimenting with Google running parts of its advertising business.
Read more at Reuters.com and The Money Times
Matthew’s Opinion
By the time you read this Yahoo’s financial results should be out and Microsoft either has to find some more money, Yahoo gives in and accepts the offer, or battle commences on Saturday.
The Murdoch joint deal would probably be tempting to most other companies, but I think Microsoft wants Yahoo for itself. It’s a massive bid to get Google squarely in its sights and I don’t think much is going to stop it getting the deal one way or another.
There has already been a lot of debate about how good or bad of an idea it is for Microsoft to buy Yahoo. This debate will continue until the deal happens and we see the actual outcome, or it doesn’t and the argument fades out over time.
The question, for the time being, still remains whether Microsoft could use the US$43 billion set aside for the Yahoo deal to better effect elsewhere in gaining a bigger share of the search market?