Yahoo Now Exploring Deal with News Corp.

After rejecting Microsoft’s bid, Yahoo is working with News Corp. on a possible merger.  Microsoft bid $41.6M for Yahoo recently. 

Speculators believe Yahoo is trying to increase the bid from Microsoft.  Yahoo simply states the deal was too low.  Either way, Yahoo is likely to receive more money unless a hostile takeover strategy is implemented by Microsoft.

Besides talking with News Corp., Yahoo also reportedly has explored an advertising partnership with Google.  In addition, reports of a possible merger with AOL appear to be more rumor than fact, said the person familiar with News Corp. negotiations.

Yahoo Cutting up to 1000 Jobs

Falling earnings and the weak economy are taking their toll on internet search giant Yahoo.  The company reported a 23 percent drop in fourth quarter profits over the previous year’s results.  For the full year profits were down 12 percent.  Yahoo also gave a mild outlook for 2008.  CEO Jerry Yang is confident of better times ahead.  However, he cautioned that the effects of recent acquisitions will not show until 2009.

A reorganization and structuring will cut nearly 1000 jobs for the Sunnyvale, California company.  This will be its largest purge since trying to recover from the dot com bust earlier in the decade.  The 7 percent reduction in force is expected to save Yahoo over $100 million in expenses this year.

In the bookstore: Yahoo (books)

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