Every once in a while a rumor comes along that is so outlandish, so crazy, so never-gonna-happen, that it makes you really hope it does happen! The latest such rumor is that Microsoft offered to buy Yahoo, a rumor that has sent investors into a craze:
Analysts said reasons for the heightened interest in Yahoo call options ranged from recent rumors that software company Microsoft Corp. might be seeking to partner or merge with the Internet company, to bullish expectations for the company’s upcoming fourth quarter earnings report.
“The speculative activity in short-term calls might reflect the recent talk about an alliance with Microsoft,” Ruffy said.
Such rumors have been rampant since Google Inc. recently fortified its lead in the Web search market by taking a 5 percent stake in Time Warner Inc.’s AOL Internet unit.
On Sunday the Los Angeles Times cited what it called speculation that Yahoo had rebuffed an $80 billion bid from Microsoft as too low.
Did you see that? Eighty billion dollars! I can’t quite wrap my head around that amount! According to Microsoft Watch, the software giant currently has about $40 billion in cash.
There’s too much to consider if such a merger were to take place that I won’t even bother unless it actually happens.