Sally Hofmeister has been getting a lot of mileage today with her Sunday LA Times article. First, the computer press was buzzing over her speculation that Google might introduce it’s own non-Windows PC at CES. Now the part of the story involving Yahoo and Microsoft:
Within days, speculation was rampant that Microsoft, determined to keep itself in the game, had offered to buy Yahoo Inc. for $80 billion. If rumors were to be believed, the Microsoft bid — a premium of more than 30% over the Web giant’s current market value — was rejected by Yahoo as too low.
Will Microsoft spend $90 billion or more to buy Yahoo or, alternatively, AOL parent Time Warner? Maybe not, especially when the software giant could buy Barry Diller’s IAC/InterActiveCorp at a fraction of the price. If owned by Microsoft, Diller’s collection of websites such as Ask Jeeves, Expedia, HSN.com, LendingTree and Ticketmaster could help drive traffic to MSN.
has Wall Street excited:
Many option investors are betting on more gains in the shares of Web media company Yahoo Inc. amid speculation of a tie-up with Microsoft Corp. and high hopes for continued growth in Web advertising.
Shares of Yahoo gained 4.4 percent to close at $40.91 on the Nasdaq amid a broad market rally.
Investors have been piling into January Yahoo calls, mostly notably the contracts that give them the right to buy the stock at $40 and $42.50 a share within the next several weeks.
On Tuesday, a combined total of 103,673 Yahoo options traded in the U.S. options market — dominated by more than 81,000 calls, more than its normal volume of 35,449 contracts, according to market research firm Track Data.
Right now Yahoo’s market cap is $58 billion.