This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Microsoft Still Has a Thing for Yahoo!

Updated from 12:23 p.m. EST

Microsoft (MSFT - Get Report) chief Steve Ballmer repeated his warm words for Yahoo! (YHOO - Get Report) at a strategy session Tuesday, helping to float shares again on takeover hopes.

Speaking at Microsoft's Strategic Meeting Update presentation, Ballmer said he would like to talk with Yahoo! CEO Carol Bartz to see if the two companies could "somehow get together and find out how to provide more competition" for Google (GOOG - Get Report).

The comments once again revived the notion that Microsoft still needs Yahoo! to strengthen its Internet weaknesses. The idea helped send Yahoo! shares up 73 cents, or 6%, to $12.70 in pre-market trading Tuesday.

This of course is familiar ground for Yahoo investors who watched Microsoft spend the better part of last year pursuing and later withdrawing merger proposals.

Microsoft is a distant No. 3 player in Internet search advertising and faces a tough choice of keeping its status quo as Google and Yahoo! take more of the business, or make a costly move to jump in to the market.

Yahoo's new chief Bartz is reorganizing the company and expected to make an announcement this week on her new plan. So far, Bartz's comments on the topic of Microsoft have been tepid at best.

Bartz has a number of strategic options including Time Warner's (TWX - Get Report) AOL franchise if she is deal hunting, as TheStreet.com's Michael Goodman points out.

"For advertisers, all of whom will eventually start spending again, AOL's network remains one of the most attractive properties to reach a broad audience," Goodman wrote. In search advertising, Microsoft and Yahoo! could combine to make a formidable foe to Google. And in display ads, where Yahoo! is strong, a hook up with AOL would "make sense," Goodman notes.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GOOG $630.38 0.00%
MSFT $43.93 0.00%
TWX $72.38 0.00%
YHOO $33.14 0.00%
AAPL $113.29 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs