Microsoft to Get Yahoo Afterall?

Well, it looks like there is another rumor going around that Yahoo has another suitor. This time according to Micheal Arrington over at Techcrunch it is a group of high-powered Silicon Valley Execs that will be making a run at Yahoo, using Microsoft as their bank. As Arrington points out, the credit markets are running dry so traditional financing is not a viable option for the deal, but Microsoft has $23 Billion in the bank doing nothing.

The details of the rumored deal is that the investor group will buy Yahoo for around $20 Billion, apparently taking it private, and sell the search and search marketing business to Microsoft for an unknown sum. The group would most likely replace all of the Yahoo Execs, and try to lure some talent back to the company to continue operations of its other businesses.

In the end this may be the best thing for Yahoo. Last year, I may not have been convinced of this, but now I think that Yahoo should dump their search business and focus on their other valuable web properties that have huge potential. For the record I am a Yahoo shareholder.

It is important to note a couple things in this whole story, first, Yahoo, while weakened is still a viable, profitable company, that just seems to have lost it’s way as of late, mostly due to Microsoft’s unsolicited deal nearly a year ago. Second, this is all as of right now purely a rumor, and may not ever happen.