Yahoo, Weighing Options, Keeps Them Open
Posted in: Miscellaneous at 13/04/2008 06:09
Yahoo's board met Friday to evaluate Microsoft's takeover bid and other alternatives but did not make a formal decision on which option to pursue, people briefed on the meeting said.
Yahoo's board did authorize the company's management to continue meeting with Microsoft and with Time Warner, these people said, and meetings with both are expected to be scheduled for next week.
In addition to Microsoft's proposal, the board is considering a plan to merge with the AOL unit of Time Warner, these people said. Yahoo has also been discussing a complementary plan to outsource its search advertising business, one of its principal sources of revenue, to Google, in an effort to increase revenue and try to remain independent.
Yahoo! holds council of war on Microsoft plan
Yahoo! held a board meeting yesterday to review how far its discussions with Time Warner about a white knight rescue were progressing, although any agreement is still thought to be a fortnight away.
The search engine, battling to stave off a hostile $39 billion (£19.7 billion) bid from Microsoft, is still understood to have some way to go before it knows whether it can announce that it has agreed a deal in which Time Warner will inject AOL into an enlarged Yahoo!