Microsoft backing down from Yahoo purchase? (Updated)

UPDATE: CFO Chris Liddell also mentioned that there were two roads which Microsoft could pursue and seemed to indicate Microsoft could follow either.

Microsoft might just be backing down from the Yahoo purchase after a better than expected earnings report issued this week. CEO Steve Balmer indicated that Microsoft is prepared to move on in the $44.6 million deal for Yahoo. IDG news service reported:

Microsoft gave its first hint that it may abandon its $44.6 billion bid for Yahoo, as it approaches the deadline for a threatened proxy battle to oust Yahoo's board.
At a conference in Milan on Wednesday, CEO Steve Ballmer said Microsoft is "prepared to move forward without merging with Yahoo," according to a transcript provided by the company.

"Today Google has the lead, there's no doubt about it and I wanna make sure that they have plenty of competition," Ballmer said. "We think the best way to move that forward quickly is to come together with Yahoo. I hope that it works, but if it doesn't we go forward alone."

This is welcome news for Apple users as Microsoft often treats us as second class citizens.

However, the deal is far from killed. As they say, It ain't over til the fat lady sings. Does this count?

[Like/Hate this blog? Subscribe to the RSS feed here!]