Kara Swisher pumps her sources again for dish on why the hell the Yahoo-AOL deal is taking so long. In the process, she learns the cute secret deal names the investment bankers have bestowed on the companies: Amherst and Yale.
But here’s Kara’s latest on the deal, which is the same as it ever was:
[T]he deal might take another semester to come together, not being signed until the end of the year, if it happens at all.
What’s taking so long? After all, two key obstacles are now out of the way–the controversial search advertising partnership with Google (GOOG) and AOL’s earnings (both were bad news, with the Yahoogle deal dumped and the results poor).
Nonetheless, there are still price issues, as Yahoo shares wobble, as well as worries about integration.
But, joked one honest player in the talks: “Neither of us moves as quickly as we need to, which got us into the trouble in the first place and is kind of how this is playing out too.”
We’ll bet there’s one more factor at work, too: Microsoft. Given the startling public begging Jerry is doing to try get Microsoft back to the table, we bet Yahoo is waiting to see whether Steve Ballmer will take the bait.
If he doesn’t, after another few weeks, Yahoo will probably trudge forward into a deal that neither Amherst or Yale really wants to do. And that’s always a recipe for success with a mega-merger of two huge companies with different cultures on different coasts.
See Also: Jerry To Steve: Please Take Me Back
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