With Yang out, is Microsoft in at Yahoo?
- TAGS:acquisition, jerry yang, Microsoft, Yahoo
- IT TOPICS:Business Intelligence, Internet, Management
How the mighty have fallen! In February, Microsoft offered to buy Yahoo for a cool $44.6 billion. Yahoo, under CEO Jerry Yang, turned them down.
That was then. This is now.
Then, Yahoo had an ad deal in the works with Google. Then, Yahoo had a stock north of $27 a share. Then, Yahoo thought it controlled its destiny.
Now, Yahoo's ad deal was scuttled. Now, Yahoo's stock is just above $10 a share. Now, Yahoo has been trying to convince Microsoft to play let's make a deal.
Microsoft CEO Steve Ballmer turned up his nose at the proposed deal revival. Ballmer said, "We are not interested in going back and re-looking at an acquisition," and added a few days later. "I don't know why they would be either, frankly. They turned us down at $33 a share."
I don't believe it. I think Microsoft still wants Yahoo. I think Microsoft told Yahoo, "Yes, we'll buy you, but there's no way we're going to do it with Jerry Yang at the helm." So, is that Jerry Yang is on his way out.
Officially, Yang will leave as soon as the board has a replacement. In theory, Yahoo is looking for someone to take over as a real CEO. In practice, I'm willing to bet they want someone who Microsoft will find acceptable as head of the Microhoo Search division.
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