Analysts: Microsoft Still Best Bet for Yahoo

It’s time for today’s edition of AOL-MicroHoogle! Fortune magazine is reporting that even after all of Yahoo’s bluster about acquiring AOL, partnering with Google, and generally stalling for time, many industry watchers continue to believe that accepting a deal with Microsoft is the best solution for Yahoo.

“We continue to believe reaching a mutual agreement with Microsoft would be the best way for Yahoo to potentially extract a higher bid,” wrote UBS analyst Ben Schacter in a note reported by Fortune late Wednesday. “The alternative would be for Yahoo shareholders to tender, although this process would not be as expeditious as if the two sides were to come to terms, and could involve a lower offer price, making the battle potentially even more protracted.”

The Wall Street Journal and The New York Times have also reported that Microsoft is now in talks with News Corp. for a joint bid for Yahoo, according to the article.