Yahoo! too Interested in AOL’s Video Content?
Analysts have reported that Yahoo! has joined the list of Google, Comcast and Microsoft in trying to strike a deal with AOL and benefit from its video content.
Sandy Brown of The Street has reported, “Yahoo! has joined the whirlwind Internet industry courtship of AOL, sources say”. [source]
According to the report, a media industry analyst, said, “All of the Internet portals want content, especially video content… content is expensive to produce and that a tie to Time Warner’s content through an AOL deal could be a boon to various players”. [source]
First there were reports related to Microsoft’s MSN and AOL. Then there were talks reported among Time Warner, Google and Comcast which still continue, according to reports.
The Street report has also quoted Marshall Front, chairman of Front Barnett Associates, which holds a $30 million stake in Time Warner, “I think Time Warner’s interest is in maximixing the percieved value of AOL as it relates not only to the stock price and Carl Icahn but to cultural and other legacy issues. It is in their interest to get as many bidders as they can”. [source]
Icahn Group had issued an “Open Letter To Time Warner Shareholders”, in which questions were raised regarding the steps taken by Time Warner and concluded by saying, “We have previously made certain proposals in an eleven page position paper which we believe, if followed, will meaningfully enhance shareholder value.
First and foremost, we believe that the greatest investment the Board can make at this time is to initiate a $20 billion share buyback. The Board should not lose this opportunity to benefit all shareholders by taking decisive action.
We also believe that all of Time Warner Cable should be spun out to give shareholders a choice of owning the world’s best collection of content assets, a well run and growing cable franchise or some combination of both”. [source]
Comments are closed.