Are Microsoft and News Corp. locking arms for a joint bid for Yahoo?
According to a report Wednesday in the Wall Street Journal, the two industry titans are in “serious talks” over such a matter. Details as to why Microsoft feels a need to bring another party into its Yahoo bid are unclear. The software giant could afford to pay more for Yahoo on its own, given the size of its cash reserve and the volume of cash that flows from its business. And despite the weakening economy and credit crunch malaise that’s hitting Wall Street, Microsoft could easily obtain more financing if needed to do the deal. Is there some sudden strategic reasoning that went off like a lightbulb for the dudes in Redmond that made the notion of a News Corp. partnership suddenly seem attractive for its Yahoo buyout bid? Or maybe there is some tangible benefit to chatting with News Corp., who might have gotten a glimpse of Yahoo’s books, whereas Microsoft to date has been shut out. The day-by-day, nearly hour-by-hour, developments involving Yahoo since Microsoft on Saturday issued a
