Looks Like Bad News For Yahoo - Short it while you can

Yahoo!: MSFT could have trouble winning a proxy fight against YHOO's board - WSJ (29.01 )

WSJ reports one major Yahoo shareholder said he "would have a hard time" selling shares at $31. The investor believes the co is worth significantly more and suspects a proxy battle would be hard for MSFT to win with an offer below Yahoo's 52-week-high intraday price of $34.08. With the threat of a proxy battle, "what Microsoft is really trying to do is get Yahoo to the table" to negotiate a sale, this person said... The co hasn't attracted any rival bids. YHOO continues to hold discussions with NWS.A about folding MySpace.com and other Web properties into Yahoo in return for a roughly 20% stake, according to people familiar with the matter. While a deal still is unlikely, NWS.A remains serious about the talks, which are giving it an inside look at Yahoo's business. News Corp. President Peter Chernin has met with at least one Yahoo director recently, and News Corp. officials last night flew out to Yahoo's offices for discussions, according to people familiar with the matter. Yahoo also is discussing a possible partnership with T, according to people familiar with the matter. The co isn't in a rush to seal a deal with anyone, adds another person familiar with Yahoo's position, as it has begun fielding other inquiries from around the tech and media spheres.