Yahoo Itching In Its Own Skin

Cool Thing

Do you get the sense that the options for Yahoo are slowly diminishing? After rebuking Microsoft's unsolicited offer, it's not clear which of the industry gunfighters will move next, Yahoo or Microsoft.

Speculation is a'buzz about various "outs" as rumors surface of a Yahoo + News Corp. alignment. Most of those options don't sound too serious and unless some other kind of deal was in the works, it could be difficult for Yahoo to fend off Microsoft's offer.

The markets are calling for Microsoft to hold firm on the $31 per share offer, as sited by one funds manager, Bob Olstein, who holds one million Microsoft shares. A smaller investor, in Michigan, holding 13,600 Yahoo shares, wants Yahoo shareholders to give Microsoft's offer more serious consideration. Either way, you know the corporate legal ambulance chasers will have a field day filing claims that one or the other of the two companies' boards should have taken or not taken the deal.

At the office yesterday we were nearly at the point of creating an office pool over what the final offer will be from Microsoft and if the merger would happen. The views ranged from $33 to $37 per share, though after some more thought I doubt any agreed upon deal would go above $35.

Meanwhile, Microsoft is ready for a Valentines Day executive makeover with a number of changes in the Microsoft executive assignments in Windows marketing, Windows Mobile, and online services business unit.

For now, we'll just have to wait and see what develops on the Microhoo front. My office pool pick is on $33.50.

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Check out Mitchell's Converging On Microsoft Podcast. Also visit Mitchell's personal blog The Converging Network and SSAATY Podcast. Visit Microsoft Subnet for more news, blogs, opinion from around the Web. Sign up for the bi-weekly Microsoft newsletter. (Click on News/Microsoft News Alert.)

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