Not surprisingly, Microsoft is still trying to acquire some parts of or all of Yahoo!
The Redmond, Wash. company issued a statement Sunday confirming that it has not entirely given up on a deal with Yahoo and is considering buying some parts of the Internet search and advertising company.
Yet also on Sunday, a memo written by Microsoft online chief Kevin Johnson and published by the Wall Street Journal says that the company is looking at a variety of alternatives with respect to Yahoo! and that an acquisition of Yahoo is not out of the question.
All of this follows published reports late last week that Yahoo mega-investor Carl Icahn may stage a proxy battle to unseat Yahoo's board of directors as a way to get the Microsoft deal done. On May 3, Microsoft put the lid on negotiations after Yahoo! Chair Jerry Yang rejected the software giant's "version 2.0" $33 per share buyout offer.
On Sunday, Microsoft officially confirmed it is still interested in doing a deal despite public insistences by both CEO Ballmer and Chairman Gates recently that negotiations with Yahoo are dead.
Right.
“In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business," according to the statement, posted on Microsoft's web site. " 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!
"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 depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties."
Is Microsoft insinuating it will try to breakup Yahoo! if a deal is not reached amicably?
Of course not.
"There of course can be no assurance that any transaction will result from these discussions," the statement read.
Smart manuevering on Microsoft's part. The statement formally re-opens the discussion, puts the squeeze play on Yang and gives Carl Icahn and other Yahoo shareholders the leverage needed to persuade the board to reconsider Microsoft's offer.
Reports suggest that Microsoft and Icahn have not spoken but this reporter gives those two parties a thumbs up for shrewd partnering. I'd bet some deal is done before Yahoo's annual meeting on July 3.
