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A popular misconception has it that Yahoo is an acronym for “You Always Have Other Options.” (According to Yahoo’s corporate history, it’s an acronym for “Yet Another Hierarchical Officious Oracle.”)
Well, not this time.
Because it appears to be the beginning of the endgame for Yahoo. Word on the street has it that the company’s board of directors will meet this afternoon to decide whether to capitulate to Microsoft. “The board, we’ve heard, is basically being told by outside advisers to take the Microsoft deal,” TechCrunch reports. “But we’ve also heard that a contingent of senior executives at Yahoo, who are willing to do literally anything to thwart a Microsoft takeover, are pushing for the Google deal and will present their case at the meeting.”
Not that it will do much good. Though a Yahoo/Google search-outsourcing deal might deliver 25%-plus accretion to Yahoo’s cash flow, spurning Microsoft’s $44.6 billion advance would almost certainly trigger a shareholder revolt. Which means it’s more than likely that Yahoo will accept the current bid or another that’s been raised a bit, as Citigroup analyst Mark Mahaney has already noted in his widely cited “Five Scenarios” analysis:
Looks like it’s scenario No. 2, then. Dun-dun… Dun-dun… Dun-dun Dun-dun Dun-dun DUN-DUN DUN-DUN!