Friday, May 4, 2007
Two possible big deals in the press today:
Microsoft is reportedly interested in buying Yahoo! or parts thereof. Shares of Yahoo were up more than 15% on the news. If it is not just wishful thinking and occurs, it would be the latest and most significant step towards consolidation of the on-line advertising industry (preceded by Google's announced $3.1 billion acquisition of Doubleclick).
Update: Looks like the Microsoft/Google tie-up rumor was a bit overstated.
Reuters Group, the U.K. based news and data servicing company, made a statement to the London Stock Exchange on Friday that it's received a third-party acquisition approach reported to be from Thomson Corp., the Canadian media company. Shares of Reuters were up more than 27% on the news. For those who are wondering, U.K. rules are much stricter on disclosure of acquisition approaches in light of share price movements than the U.S. stock exchange and securities rules. The U.S. rules typically allow for a no comment on these matters as opposed to the U.K. where affirmative disclosure is required.