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02/15/2008
The Yahoo soap opera is getting very interesting from the news reports today. The deal is from News Corp's Fox Interactive Media and it's a very interesting merger. They have valued the merger at an estimated $50 billion, a little bit more than the Microsoft offer. Most of us have little knowledge of who Fox Interactive is and why on earth this deal would be taking place. But with one domain name, you'll get a better idea: www.myspace.com. Yes, they own the infamous and top traffic site of My Space. The major benefit of this potential merger is an advertising powerhouse that would have an astounding 35% market share of online advertising. This is also a great way to stave off Microsoft. And that is important to Yahoo, as they recently communicated in letter to their shareholders. They implemented a new strategy last year (which has seemed like a great move in my interactions with Yahoo), and they fear the Microsoft bid would destroy their positive direction. 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