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February 28, 2008
Whopping rumor slams into Microhoo

Following the ins and outs of Microsoft's unsolicited Yahoo bid may require more than a grain of salt. But two strange reports underscore what continues to be the best drama in American business.

According to an AFP wire report, officials at Microsoft say they are "optimistic" about acquiring Yahoo.

"We continue to have a very close dialogue with Yahoo's shareholders (and) Yahoo's management," Microsoft senior vice president Jean-Philippe Courtois said.

Whether that statement is wishful thinking, a ruse or a sign of an eventual outcome is anyone's guess. Yesterday, Yahoo saw its tally of shareholder lawsuits rise to seven, all the while it continues to face a proxy fight from Microsoft.

At the same time, Yahoo hasn't stopped its own plans to pull out of a slump. Jerry Yang, who founded the internet giant, has been vocal about a new strategy for Yahoo since he resumed control of the company last year. Earlier this week, two pieces of Yang's strategy became illuminated as he announced plans to let publishers make changes in Yahoo's search results while giving users a voice in determining the content of Yahoo's homepage. 

Add to Yang's news the continuing rumors that Yahoo is in talks with News Corp. (deemed a long shot) and it's not clear that Microsoft and Yahoo are any closer to striking a deal.

Meanwhile, a second -- and perhaps more peculiar -- rumor has surfaced at TechCrunch where the blog is reporting that Google is planning to buy a minor stake in Yahoo to drive up the stock price and disrupt Microsoft's bid to buy the company.

Since Microsoft launched its bid, Yahoo has been linked with Google and Google has been highly critical of a deal.

According to TechCrunch, Google's attempt to purchase less than 20 percent of Yahoo may only serve to give Yahoo's board pause, if it is indeed considering accepting Microsoft's offer.

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