Feeds

Yahoo! shares tumble as Ballmer shuts coffin on Microhoo

Redmond supremo unfazed by yin Yang

Boost IT visibility and business value

This week, Yahoo! chief Jerry Yang said "the best thing for Microsoft is to buy Yahoo!" But Steve Ballmer doesn't see it that way.

Chatting at a business lunch in Sydney today, The AP reports, Ballmer reiterated that Microhoo is well and truly dead.

"We made an offer, we made another offer, and it was clear that Yahoo didn't want to sell the business to us and we moved on," he said. "We are not interested in going back and re-looking at an acquisition. I don't know why they would be either, frankly. They turned us down at $33 a share."

Following these words, Yahoo! shares tumbled as much as 14 per cent. At last check, they were down 12.5 per cent on the day, to a measly $12.21 a share.

In February, Steve Ballmer bid $31 a share for Yang and company, and when Yang turned him down, he went to $33 a share. That's a $47.5bn offer.

But on Tuesday evening, six months after he rebuffed Ballmer a second time, Yang seemed to indicate he was open the merger. "People who know me know I don't have an ego about remaining independent versus not remaining independent," he told a San Francisco Web 2.0 love-in.

Earlier in the day, Google had terminated a search advertising tie-up with Yahoo!, after the Department of Justice threatened a lawsuit.

Breathless tech reporters the world over reported that Yahoo! was attempting to revive talks with Microsoft. But it appears Yang is still caught in that nether world where he believes Yahoo! is better off on its own. Reuters first reported that Jerry called a Microsoft-Yahoo merger "the best option for Yahoo!" But the news service soon realized he'd called it the best option for Microsoft:

Reuters on Yang

Reuters caught in Yahoo! spin machine

A Yahoo! spokesman confirms that Yang doesn't believe Microhoo is necessarily a good idea for Yahoo! "[Yang's] his contention was that the best thing for Microsoft was to buy Yahoo!, but not necessarily that it was the best thing for Yahoo!," he said.

But Yang did say he's "open-minded" about selling Yahoo!'s search business to Ballmer. And two days later, Ballmer seemed amenable to at least a search tie-up. "I'm sure there are still some opportunities for some kind of partnership around search, but I think (an) acquisition is a thing of the past," he told some Australians. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.