Microsoft's CEO once again reiterated that he is looking to do a deal with Yahoo -- and an outright buy of the online service giant is still on the table.
In a chat with Wall Street Journal staffers Walt Mossberg and Kara Swisher at AllThingsDigital conference Tuesday, Steve Ballmer, on stage with Microsoft Chairman Bill Gates, said anything is possible.
"We made a bid. There was a difference of opinion over its size. We walked away. We’re now talking to Yahoo about a new deal that doesn’t involve a full-on acquisition. But we reserve the right to rebid for the company if we choose to."
It's strange. Microsoft's top brass continue to set expectations publicly that they are seeking an "alternative deal" with Yahoo -- that is, an alternative to acquisition -- but at the same time continue to reserve the right to make a full buy."
Why the duplicitousness? Why not just say all options are back on the table?
Yahoo Chair Jerry Yang balked at Microsoft's first offer of $44.5 billion and scoffed at its version 2.0 $47.5 billion offer earlier this month. Following the last rebuke, Microsoft issued a public statement stating that it was taking the offer off the table and would not attempt a hostile and likely pricey takeover. Gates chimed in at a Tokyo press conference that indeed the deal was over -- for real.
But it's not. The smooth talking belies the heavy politicking going on behind the scenes between Microsoft and Yahoo's shareholders and board of directors, which has delayed its annual meeting as multiple parties negotiate a mega deal. Certain shareholders, namely Carl Icahn, have threatened to replace Yahoo's board of directors if the deal with Microsoft ultimately fails. Looks to me like a MicroHoo deal is very probable. Besides, Gates and Ballmer looked way too happy on stage today.
