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Disney Almost Bought Yahoo At The Height Of The Dot-Com Bubble

Disney Almost Bought Yahoo At The Height Of The Dot-Com Bubble - Walt Disney Company The NYSE:DIS, Yahoo! Inc. NASDAQ:YHOO

Back in 2001, Yahoo! Inc. YHOO 2.75% was the second-most popular name on the Internet after AOL and even attracted the interest of Walt Disney Co DIS 0.2%.

According to the Los Angeles Times, Yahoo was a likely takeover target at the start of the new century in a "race among AOL's rivals for global equality in cyberspace." The publication added that an acquisition of Yahoo by Disney would represent a "perfect fit."

Disney would gain "credibility" on the Internet, which at that time was "poised to become the pipeline of choice" for music, movies, news and other content.

However, Wall Street analysts at the time suggested Yahoo would be acquired by a competitor, such as Viacom, Inc. VIAB 0.44%.

Viacom also passed on the opportunity to acquire Yahoo but was active in the M&A space and bought Paramount Pictures, Blockbuster Video, CBS, Infinity Broadcasting and BET Holdings.

CNBC's David Faber even wrote in his book, "The Faber Report: How Wall Street Really Works - And How You Can Make It work For You," that he was "picking up strong hints" that Disney was working on a deal to acquire Yahoo.

So why didn't a deal transpire? The LATimes opined that Disney's ex-CEO Michael Eisner "does not have deal-making in his blood" given his track record of growing the Disney brand internally.

© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.