Yahoo Takes Its Ball & Goes Home… to AOL?!

AOLHoo?  YahooOL?  Let the next round of name-guessing begin. 

Seems as though Yahoo has told Microsoft to go take a hike.  Well, that’s not a terribly surprising move, but that doesn’t mean it’s a smart one. 

Rumors are now swirling that they’re back talking merger with AOL.  Yeah, right.  Because AOL is sooooo much better an option than Microsoft (show of hands:  is anyone else frankly surprised that AOL even still exists?). 

I think Yahoo telling Microsoft to get lost is really just a corporate version of the old salary-negotiation thing.  They’re trying to get Microsoft to up their bid, plain and simple.  I don’t think there’s really any benefit for Yahoo in merging with AOL…in fact, the only benefit appears to be that AOL isn’t Microsoft. 

I don’t think for a second that Yahoo is really going to merge with AOL.  This is just a bargaining tactic.  I think the AOL-merger is just as likely as a Yahoo/PizzaHut merger.  Mmmm.  Pizza. 

So now the world waits to see how Microsoft responds.  I’ve read about how Microsoft’s stock has dropped a bit since their offer went out to Yahoo–lowering Microsoft’s value an amount almost identical to what they offered Yahoo.  Ouch.  So… will they increase their offer even more?  Or will they hold the line?  Whatever they choose to do in response, it’s pretty clear that this is all going to get more interesting from here.  Seems obvious, too, that Yahoo as we know it–as a standalone company–is nearing its end. 

We’ll do our best to stay up on the news and keep you updated.  I think Microsoft is still going to be buying Yahoo, when all is said and done.  Exactly how and when and why and how much is what we’re waiting to see, but any other outcome would surprise me.  And yes, before you ask… I’m totally an expert in the area of $44 Billion mergers. 

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