Microsoft Source: We're Talking About Buying Yahoo (But will Yahoo accept this time?)

Business Insider ^ | 09/16/2011 | Nicholas Carlson

[SeekAndFind]

As big shareholders flee AOL and Yahoo's board flounders, consolidation is "definitely" in the air, a source close to Microsoft's portal, MSN, tells us.

"Definitely, people are talking about it."

This source – who asked to remain anonymous because getting fired sucks – says Yahoo is more attractive to Microsoft than AOL.

"People generally expect AOL to come apart one way or another. I don't think that's an interesting asset. It's just been so beaten down."

Regarding AOL's prized acquisition, Huffington Post, this source says: "I love Huffingotn Post as a user. As a business I don't." He says its still viewed as a site for progressives, and that this hurts brand advertising sales.

"Yahoo is a lot more interesting. If it comes into play, then at least their US media business is a pretty interesting asset. It's complicated because of those Asian assets."

In the years after Microsoft made a run at Yahoo, senior leadership at the company grew cold to the prospects of the portal business, focusing most of its online efforts on Bing.

But lately, says our source, there has been a realization from management that "MSN is a crictical component of helping Bing win."

Our source says it has helped that ex-AOLer Ted Cahall has come to the business and really helped turn it around.

Our source says this has people at MSN "enjoying a little schadenfreude."

[Yossarian]

This source – who asked to remain anonymous because getting fired sucks – says (...)

Ah, journalism...