ADOTAS – On Sunday, The Times of London reported on a deal that would have Microsoft picking up Yahoo’s search business for $20 billion. The only problem? It is “total fiction” according to former Fox Interactive Media president Ross Levinsohn, as reported on AllThingsDigital.
The $20 billion search deal smelled fishy from the start since, as AllThingsD points out, Yahoo’s entire market cap is worth $16 million.
The Sunday Times said the details of the proposal were still being hammered out, but would have involved Microsoft supporting a new executive team that would take the helm at the faltering Yahoo. The paper floated names including ex-AOL chairman and CEO Jonathan Miller and Levinsohn.
Microsoft’s offer to buy Yahoo for $47.5 billion was rescinded in May after Yahoo’s Jerry Yang and its board rejected the bid — to many shareholders’, notably Carl Icahn’s, intense and vocal disapproval. He now sits on Yahoo’s board and has increased his stake in the company to 5.4%.
Icahn has long rallied for a deal – any deal – with Microsoft and has started pushing search, telling Barron’s that “[If] they are interested in doing a deal on search … we should pursue that.”