Doug Kass’s Gnome Sees Yahoo Takeover

Doug Kass’s gnome is an active fellow. Although still a mystery as to who he is, Kass’s gnome is always hearing takeover rumors and the like. The latest rumor is the ever talked about take over of Yahoo. And again, not surprisingly, Microsoft’s name was floated around. Yahoo turned down Microsoft over three years ago, when their stock was trading at around $33 a share. However, Kass’s gnome dismissed that rumor – saying that Microsoft would be interested in only parts of Yahoo.

Earlier in the week the gnome said a more likely takeover scenario of Yahoo would involve private-equity firm Silver Lake and Alibaba Group Holding Ltd. Right now, Yahoo owns a 40% stake in the Chinese e-commerce portal and some are saying the Alibaba Group wants to buy that stake back along with Yahoo.

Who’s right? What will happen to Yahoo?