Investopedia: Yahoo! - Everybody's Favorite Target?

As a general rule, investors should never pay much attention to buyout rumors that spring up in the weeks immediately preceding another earnings cycle. Buy-side analysts and managers are desperate for any shred of tradeable information, sell-side analysts are desperate to drive trading, and financial writers are desperate to meet quotas and deadlines.


When times are tough, desperate people go back to what's comfortable. In tech, that means rumors and speculation around the fate of Yahoo! (Nasdaq:YHOO). This time around, though, the change in leadership at the company at least makes the speculation seems a little more fresh.

The Obligatory Microsoft Mention
Although Microsoft (Nasdaq:MSFT) never seems to move when or where the experts say it will, analysts and writers continue to flog the "Microsoft should buy Yahoo!" meme. Okay, it makes some sense. Microsoft and Yahoo! are interlinked in the internet search business and it is not hard to imagine that properties like Yahoo! Finance and Yahoo! Sports could be leverageable on the MSN platform.


Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Yahoo---Everybodys-Favorite-Target-YHOO-GOOG-MSFT-AAPL-AOL-MWW-IACI1007.aspx