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April 11, 2008 11:28 AM PDT

Looks like some Yahooers prefer Microsoft to AOL

by Stephen Shankland
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D: All Things Digital's Kara Swisher has a nice insidery account of a meeting various Yahoo executives apparently had Thursday with Chief Executive Jerry Yang. The upshot: they (and various other Yahoo employees she said she spoke to) have mixed feelings about being subsumed by Microsoft but recoil at the prospect of acquiring AOL.

The employees she surveyed think Time Warner's AOL is "slow-moving, weak in technology, and saddled with a largely dispirited staff," Swisher said. (Unsurprisingly, that assessment is the polar opposite of that from AOL CEO Randy Falco, who pondered AOL's appeal to others in a memo to employees.)

Swisher quoted one Yahoo executive as saying, "We have enough problems without getting theirs, which are much worse." And another juicy sound bite: "Microsoft would not be my first choice...but AOL is not even my third."

One deal reported to be in the works at Yahoo, as it seeks to counter Microsoft's takeover attempt, is the acquisition of AOL, minus its dial-up business. As part of the deal, Time Warner would pay for a stake in Yahoo, funds Yahoo would use to buy back its shares.

Sanford C. Bernstein analyst Chris Di Bona thinks the AOL-Yahoo scenario is plausible, if Time Waner invests $2 billion and the combined AOL-Yahoo company produces $500 million in revenue the companies lacked on their own.

Stephen Shankland writes about a wide range of technology and products, but has a particular focus on browsers and digital photography. He joined CNET News in 1998 and since then also has covered Google, Yahoo, servers, supercomputing, Linux and open-source software, and science. E-mail Stephen, or follow him on Twitter at http://www.twitter.com/stshank.
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Bigger severance package
by hunter_jc April 11, 2008 12:30 PM PDT
I think that Microsoft can provide a bigger severance package is a big attraction there.
Reply to this comment
Yeah but they're too cheap...
by JCPayne April 11, 2008 1:35 PM PDT
If not... Then you just sever @ Microsoft... Goto Google or build a cool app that Google will buyout. Get acquired take the nice premium on the company you sold then retire....
I'd rather...
by Miked350z April 11, 2008 1:41 PM PDT
...work for AOL, given the alternatives. Least Yahoo'ers would not
have to adopt windows, since AOL is very unix centric. Working for
M$ is like working for satan.

Is it hot in here?
Reply to this comment
MSFT Deal: Like Being Forced to Mate With the Creature from Alien !
by Sumatra-Bosch April 11, 2008 8:51 PM PDT
AOL's staff is dispirited? Great. Beats working for a staff that is made up of psychotic, incompetent face-biting lunatics like MSFT.
Reply to this comment
AOL beat Yahoo - Financial site
by water4u99 April 11, 2008 10:20 PM PDT
AOL surpassed Yahoo as the number 1 site with their Money and Finance pages. So no need for boosting your ego at AOL's expense.
Reply to this comment
Yahoo/microsoft
by ruby2day April 12, 2008 11:37 AM PDT
I would like it better if Microsoft made the successful bid: hopefully it would stay the same,as far for the way yahoo has it set up; any changes hopefully would be easier for the operator.aol has flooded the market so much that you can only get on the site for a little while then your knocked off. Plus i believe aol is really not operator friendly, at least the last time i was on it..
winkum1
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