The Microsoft-Yahoo circus is open for business again. Microsoft CEO Steve Ballmer on Thursday said a Yahoo acquisition would still make sense for both companies. He spoke at the Gartner technology conference in Orlando, Fla.
While Ballmer insisted that Microsoft has no interest in acquiring Yahoo and is not currently holding any discussions with the search giant, he also said the companies could consider a partnership on search engines in the future.
“It’s clear that Yahoo did not want to sell the company. It didn’t want to sell when we offered $33,” Ballmer said, according to Bloomberg News. Microsoft later issued a statement Thursday afternoon, saying: “Our position hasn’t changed. Microsoft has no interest in acquiring Yahoo; there are no discussions between the companies.”
The Recent History
A quick overview: Yahoo rejected Microsoft’s $44.6 billion takeover bid — twice. Ballmer sent what amounted to an ultimatum to Yahoo’s board in early April. That letter made clear that Microsoft’s goal in making “such a generous offer” was to create the basis for a speedy and ultimately friendly transaction.
Ballmer wanted Yahoo to authorize a team to negotiate and come to an agreement. He then threw down the gauntlet: A three-week deadline to come to an agreement — or else. But the “or else” never happened. After much back-and-forth posturing in the media, Yahoo remained independent.
More recently, rumors began to emerge that Yahoo and AOL would combine forces. The rumor mill threw out numbers as high as $10 billion for AOL. That caused Yahoo’s stock to drop 84 cents on Wednesday. Yahoo’s stock was at a 52-week low before Ballmer spoke, but saw a jump late Thursday on the news.
The Imminent Future
There are any number of scenarios that could play out in the coming week before Yahoo releases its earnings report. There may be some closure…