I’m guessing that with Carl Icahn at his doorstep, Jerry Yang must had felt the need to save his skin stop the infighting. So I’m not at all surprised that Yahoo and Microsoft are talking again. Microsoft said in a statement:
“Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo.”
What does that mean? Perhaps Ballmer can’t justify buying all of Yahoo, even at a reduced price. Or perhaps it’s part of a larger strategy. The statement goes on to say:
“Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative,”
Translation: If the price is low enough and/or the board of Yahoo are in enough pain, we’ll bite because we know you’re in no position to argue.
If this deal doesn’t close this time, methinks Yang and company are screwed.