Yahoo's largest investor doubles shares

By Justin Mann on April 10, 2008, 1:00 PM
Another piece of information has come out of the excessively-covered Yahoo today. While I am sure we are all looking forward to when Yahoo makes a decision and this all goes away, the impact that their decision could have makes it worth watching. Yahoo's single largest investor, Capital World, has recently doubled their stake in Yahoo, giving them 10.1% ownership of the wishy-washy search giant. This not only will benefit them once Yahoo moves forward, but could also give them more ability to sway the minds of those who control the company. Why the sudden interest in doubling their stake? Clearly, they see that Yahoo is about to get a huge boost in income no matter which way they decide to go.

Along the same note, earlier this morning we heard about Yahoo dealing with AOL. While the rumors of a Google merge were put to rest pretty quickly, an AOL merger seems plausible at the least and probably a better move for the search market as a whole. Others seem to share that sentiment, fearing that a Microsoft takeover would result in Yahoo being more or less disposed of to make room for MSN, whereas an AOL merger might actually see an improvement in Yahoo services.

User Comments: 2

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icye said:
In the short-term, a merger with Time Warner-AOL may seem good but from the way they run things, it would not be a good thing for the long-term. AOL is a cancer to the internet and to think anything from them can improve Yahoo! is wishful thinking. Its more posturing than anything else with this news and its more like a soap opera with these recent Yahoo! news tidbits. While all this is going on, Google is increasing its lead in this market and by the time this deal with whomever is finished, it may be a long road to catch up to Google.
thejedislayer said:
I think Yahoo has become pretty desperate and are trying to seek ways from getting swallowed whole by Microsoft. That's obvious, but Yahoo could just be screwing itself later on with this merger, just like you said, Icye.
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