On Friday, the New York Post business section reported, based on a banking source, that Microsoft was seriously considering a purchase of Yahoo. While talks of this nature likely occur all of the time, the strong wording led the public and investors, especially, to consider this a done deal.
It seems the story was off.
Friday’s dramatic bounce in Yahoo’s stock on reports of a deal with Microsoft - later discredited - reflects the pressure facing the third- and second-largest internet companies as they struggle to gain market share from Google.
Now, media pundits are casting their glare at the Post (whose story is still up) (via Romenesko).
You can’t just drop a bombshell that jerks around 80,000 Microsoft and Yahoo! employees, rocks Wall Street and then fizzles before the day is over.
The Post should investigate — and report — whether its anonymous investment banker sources made any money off the huge run in YHOO caused by its story.