Why Jonathan Miller Buying Yahoo Makes Sense

• Ex-AOL CEO, Jonathan Miller, is rumored to be talking with private equity and sovereign wealth funds in an effort to raise $28 to $30 billion to buy Yahoo for $20 to $22 a share.
• Over the weekend, a false report from the UK’s Times Online said that a deal for Microsoft to buy Yahoo’s search business was close to going through for roughly $20 billion.
• However, included in the false reports,  Jonathan Miller was potentially the person that would be taking over Yahoo as CEO if Microsoft were to go through with a deal. That turned out to be false, but this new deal makes a lot more sense. Microsoft never would have paid $20 billion just for the search business. It may have been the worst case of false citizen journalism getting into the mainstream news since the Steve Jobs heart attack.
• This deal makes much more sense since Yahoo is extremely cheap right now and taking over the entire company makes a lot more sense than just a fraction. Moreover, with the financial crisis, not many players out there are willing to take the liability of buying a fledgling search company hat has seen a succession of poor management through the years. If the sovereign wealth funds invest, along with our own domestic VC’s to take over Yahoo (Jonathan Miller at the head), the company might be able to turn itself around to the point that the original $33 billion offer for Yahoo from Microsoft will come back when the financial crisis is lifted. That’s over $10 billion in profit.
• Miller apparently met with Yahoo in the last few weeks while the company searches for a new chief executive. Miller has also been seen giving presentations to global funds on a secret mission. Let’s hope for Yahoo this deal goes through.

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