Yahoo! seems to be looking for alternatives ever since Microsoft made a bid to buy the company. Yahoo! has been talking to Time Warner trying to thwart Microsoft’s bid.
Some sources say that if a deal goes down, Yahoo! might acquire Time Warner’s AOL, whereas Time would take a large minority stake in the combined company.
Yahoo! is also in talks with News Corp. discussing a possible deal where Yahoo! would acquire MySpace in exchange for a stake in the company.
Yahoo! rejected Microsoft’s bid, and the reason is that $31 a share price at the time of the bid is now worth $28.2 due to decline in Microsoft share prices and such prices undervalue Yahoo.
Nevertheless, it’s likely that Microsoft will purchase Yahoo! despite all the talks, and Yahoo! might just be avoiding the inevitable.
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