I don't know how true rumors of News Corp (NASDAQ:NWS) ($23.74) negotiating to own a piece of Yahoo (YHOO) ($27.91) got started, but it would definitely be a positive for the stock.
It would mean that management would have a shareholder who would always be lighting a fire under their backside. I'd love to have Murdoch as a partner, but at the rumored 30% of Yahoo that News Corp. would get for trading MySpace - it doesn't seem like a very good deal for Yahoo.
Disclosures and Confessions: I do not own Newscorp (NWS). At its current P/E, it seems expensive for a media property at this point. However, I'd be happy to buy it if it got cheap enough. I think that at this point, my TV broadcasting exposure is part of my GE position. I do own Yahoo.
If the Yahoo shares rise above $35, I'm likely to start selling. I'm short Jan 2008 35 strike calls against half my position of YHOO and am also short Jan 2008 30 strike puts.
I like Yahoo!. For years MyYahoo.com has been my browser startup page; I pay to use Yahoo enhanced email; I have over 2500 photos on Flickr ; I find Yahoo Finance to be almost as good as Bloomberg but without the $1800 a month price tag; I have even been using Yahoo's search recently and find it so greatly improved that I don't need Google (NASDAQ:GOOG) as much. I have registered websites using Yahoo.