German media giant Bertelsmann isn't targeting troubled U.S. Internet company Yahoo for a takeover, Reuters reports.
"There is definitely nothing to (such rumors)," one source told Reuters, following a report in the Financial Times Deutschland which referred to speculation that Bertelsmann, Disney or French Group Vivendi may make a bid for Yahoo. A Bertelsmann spokesman declined to comment on the speculation surrounding Yahoo.
Meanwhile, Yahoo's stock plunged over 20 percent on Thursday to its lowest level since 1998 after a profit warning. Yahoo announced the resignation of its chief executive late Wednesday and warned that first quarter revenues and earnings would miss estimates due to lower advertising spending.
Bertelsmann's 17.2 percent stake in Lycos Europe, Yahoo's leading European rival, makes a move for Yahoo unlikely, observers say. Bertelsmann is currently seeking a merger of its music business with Britain's EMI and is developing a subscription-based music service with ex-renegade online song-swap master Napster.