Yahoo! (YHOO): All Hell Breaks Out As AOL And News Corp (NWS) Move In
Various press reports indicate that Time Warner (TWX) may be close to combining its AOL unit with Yahoo! (YHOO). At the same time, Microsoft (MSFT) is planning to make a joint bid for Yahoo! with news corporation.
The News Corp options would see MySpace, Yahoo!, and MSN combined.
A Yahoo! combination with AOL would probably use Google’s (GOOG) search technology. The savings from combining the two companies could probably be in the billions of dollars a year.Staff cuts would be part of that. Outsourcing search functions to Google would be another part.
The by-product of these maneuvers is that the price for Yahoo! just went up considerably The company board made a series of shrewd moves.
Douglas A. McIntyre