Ok, I think most people agree that the the Yahoo saga is dead and buried. Yahoo is actively seeking a tie up AOL. This effectively prevents Redmond getting their hands on the pioneering internet company. Actually, no!

It seems that Mithras Capital, which holds 1.9 million Yahoo shares , would like Microsoft to buy Yahoo at $22 per share, according to Reuters. Once an acquisition is complete, Microsoft could then shed the non-search aspects of the businesses leaving them with a significant stake in the world of search.

Mithras Capital partner Mark Nelson seems to think that is a realistic proposition! Does anyone think that Microsoft will bother responding? Ballmer and co. are probably chuckling to themselves over the apparent chaos that currently reigns supreme inside Yahoo. Time for Yahoo to make a stance, get rid of Jerry Yang (I do like Jerry Yang, but it’s time to move on), appoint a new CEO and get back into the saddle.

Mithras Capital have obviously lost the plot - I wonder if they’ve noticed that the world economy is facing armageddon? If they have, why would Microsoft even consider a deal at a time like this? Sure, they’ve got lots of money in the bank but I’ve a feeling they maybe be needing a lot of this ‘loose change’ to shore up the company in the next few years.

Final note: Yahoo were down another 8.1% today, to $12.65, from yesterday’s close of $13.76. Ouch!

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