The WSJ fueled a rumor that Jonathan Miller is working with private equity companies to assemble a $28-$30 billion deal to buy out Yahoo! Yahoo!’s stock price went up to $11.50 per share as a result. Is this deal actually true though? I have my doubts.
You may recall that Jonathan Miller was refused permission to join Yahoo!’s Board of Directors because he was signed in a non-compete agreement with AOL. Miller is the former CEO of AOL. Jonathan Miller and Ross Levinsohn are both currently partners at Velocity Interactive Group.
Michael Arrington points out that Velocity is also actively raising a $300 million fund, but they have gotten a commitment of $150 million so far. The WSJ did not make an effort to contact Velocity regarding the story according to Arrington.
There is a good explanation over at this blog.
The deal doesn’t sound like it is real and it sounds like Yahoo had an equipment problem today.