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News Corp.-Yahoo: More of a bad idea

Recent history offers plenty of warnings to anyone, including Rupert Murdoch, contemplating a competing offer for Yahoo.

If Rupert Murdoch decides to start a bidding war for Yahoo--that's the rumor du jour on Silicon Alley Insider--then we've truly entered the realm of the bizarre.

Not that it can't happen. I've been around this industry too long to underestimate the potential for bad decision making. Ego and daring often trump sound judgment. I won't devote more space revisiting the litany of corporate bungles that were originally hailed as strategic coups by the business elite. You can read my position on the wisdom of a Yahoo-Microsoft combination in my Friday column (click here).

Murdoch's business acumen speaks for itself and News Corp. is a terrific franchise. Like any of their rivals, it's keen to expand both audience and advertising reach. But would a pair-up between a huge media company and a technology company--one with a big online media component--work out? We've been there before. It's called AOL-Time Warner.