Dear Visitor,

Our system has found that you are using an ad-blocking browser add-on.

We just wanted to let you know that our site content is, of course, available to you absolutely free of charge.

Our ads are the only way we have to be able to bring you the latest high-quality content, which is written by professional journalists, with the help of editors, graphic designers, and our site production and I.T. staff, as well as many other talented people who work around the clock for this site.

So, we ask you to add this site to your Ad Blocker’s "white list" or to simply disable your Ad Blocker while visiting this site.

Continue on this site freely
  HOME     MENU     SEARCH     NEWSLETTER    
CUSTOMER RELATIONSHIP MANAGEMENT NEWS. UPDATED 13 MINUTES AGO.
You are here: Home / Business Briefing / Former AOL Chief Seeks Yahoo Deal
Former AOL Chief Seeking Funds To Buy Yahoo
Former AOL Chief Seeking Funds To Buy Yahoo
By Jennifer LeClaire / CRM Daily Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
DECEMBER
03
2008
Former AOL CEO Jonathan Miller is talking with investors about buying Yahoo, according to The Wall Street Journal. After walking away from a four-year stint as head of AOL in 2006, Miller is looking at what some observers consider an unlikely deal for an Internet property that has taken some lumps.

According to the Journal, Miller hopes to put together a deal that would give Yahoo shareholders $20 to $22 a share. That means raising about $28 billion to $30 billion to buy all of Yahoo.

Microsoft bid $44.6 billion for Yahoo in late January. Yahoo's board unanimously rejected that offer and said it would not even consider discussing an acquisition unless Microsoft anted up at least $12 billion more.

Miller Not a Stranger

Miller has reportedly been talking with a spectrum of potential funding sources, including private-equity investors and wealth funds, for months, but the Journal's sources said it's unclear how those talks are progressing. Yahoo couldn't immediately be reached, but the company's policy is not to comment on speculation.

The effort reflects the tremendous value that Yahoo still holds, according to Greg Sterling, principal analyst at Sterling Market Intelligence. The online advertising market where Yahoo operates is growing fast, from more than $40 billion in 2007 to nearly $80 billion projected by 2010. This market is increasingly dominated by Google, but Yahoo is second and analysts said its assets are worth more than its stock price indicates.

"Miller has been involved in the Microsoft-Yahoo negotiations, so he's an insider," Sterling said. "He also ran AOL, so he would have the confidence of potential private-equity investors."

As a partner at the investment firm Velocity Interactive Group, Miller counseled both Yahoo and Microsoft on how to come to an agreement. The controversial merger failed, and so have many of Yahoo's alternative prospects.

Can Miller Get a Deal Done?

Most recently, Yahoo's proposed search-advertising deal with Google fell through. That's when Yahoo hinted that it wanted Microsoft to provide an escape despite spurning the software giant's offer. But Microsoft has said it has no interest in acquiring Yahoo. News Corp. and AOL have also been mentioned as possible Yahoo suitors, but a deal remains elusive for the ailing Yahoo.

Miller's quest may not yield any different result. Despite the potential, Sterling said the deal is a long shot given the economy and the difficulty Miller would have in raising enough money to pull it off. However, news of the talks -- and Wall Street's reaction -- shows the market wants some sort of big deal with Yahoo.

Yahoo's stock price rose more than 10 percent this week. The stock was trading at around $11 a share Wednesday afternoon.

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
MORE IN BUSINESS BRIEFING

NETWORK SECURITY SPOTLIGHT
China-based Vivo will be the first company to come out with a smartphone featuring an in-display sensor for fingerprint security, beating Apple, Samsung, and other device makers to the punch.

CRM DAILY
NEWSFACTOR NETWORK SITES
NEWSFACTOR SERVICES
© Copyright 2017 NewsFactor Network. All rights reserved. Member of Accuserve Ad Network.