Rupert Dumps Jerry, Going to Prom with Steve
Posted Apr 10, 2008 12:20pm EDT by Aaron Task in Investing, Internet, Media, Newsmakers
Related: MSFT, YHOO, GOOG, NWS, TWX
Depending on your perspective, Rupert Murdoch is either a shameless cad or brilliant tactician.
Shortly after Microsoft's unsolicited bid, Murdoch approached Yahoo's Jerry Yang to offer News Corp.'s support in fending off Redmond's advance, The Times reports. Now, two months later, Murdoch's firm is talking with Microsoft about aiding its effort to acquire Yahoo.
Playing both sides of the deal may look unsavory, but it's a prudent business strategy, says Robert Cyran of Breakingviews.com.
Indeed, it is the "outsiders" like News Corp. and Google who have benefited the most from the Microsoft-Yahoo saga. The former is positioned to play a role with either firm on the most favorable terms, while the latter is benefiting from its rivals' distraction.
Google seems poised to win no matter what the outcome, but it rarely pays to underestimate Rupert Murdoch: A successful three-way deal is difficult to pull off, but a MySpace-MSN-Yahoo combination would be a formidable competitor even Google could not easily defeat.
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