HipMojo.com http://watchmojo.com/web/blog Covering Online Video, Web, Search, Investing, Technology, Strategy, Investing, M&A, Financing, VCs Sat, 21 Nov 2009 21:40:57 +0000 http://wordpress.org/?v=2.1.3 en Rupert Murdoch: +$900M is better than -$45B http://watchmojo.com/web/blog/index.php/2008/02/04/rupert-murdoch-900m-is-better-than-45b/ http://watchmojo.com/web/blog/index.php/2008/02/04/rupert-murdoch-900m-is-better-than-45b/#comments Tue, 05 Feb 2008 02:58:13 +0000 Ashkan Karbasfrooshan GoogleInternet & WebM&AMySpaceNews Corp./FIMOnline AdvertisingSearch WarsStat of the DayUncategorizedYahoo! http://watchmojo.com/web/blog/index.php/2008/02/04/rupert-murdoch-900m-is-better-than-45b/ Rupert Murdoch confirmed during News Corp.’s analyst call that he was not planning on bidding on Yahoo!

No wonder: Google is guaranteeing him $900M via Fox Interactive Media. Yahoo! used to power those very same text ads via Overture and when the deal came up for the right to power MySpace’s search, Yahoo! did not even lobby for the business.

Translation: Yahoo! would never be able to generate that kind of return for him.

Does Murdoch wish he could get all of Yahoo! for 25% of MySpace? Of course.

But is he crazy to trade off $900M in guaranteed revenue from Google to instead acquire Yahoo! for $45B?

Are you crazy? Frankly, Murdoch is so smart that he welcomes a MSFT acquisition of YHOO. Why? Because it makes Google price MySpace’s inventory at a premium.

Update: I am relinking to a post I did when the deal was announced analyzing whether or not Google overpaid.

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