Not Over After All?

Posted on May 5, 2008

Yahoo CEO Jerry Yang talked to the press Monday, opening the door to further negotiations if Microsoft is willing to show him the money, or what he considers the appropriate price.

Microsoft’s final bid was $33 and Yahoo held out for $37, or something close to that number, but Ballmer decided on Saturday not to continue the courtship. With Yahoo flaunting its possible ad serving deal with Google and holding out for an 80 percent premium over the January 31 closing stock price, Yang appeared to overplay his hand.

According to Reuters, Yang said it was Microsoft who decided to cease negotiations. With shareholder lawsuits piling up in the wake of the failed deal, the stock suffering, and no other suitor in sight, Yang may now be looking for another opportunity to close the deal.

“If they have anything new to say, we would be open…I am more than willing to listen,” Yang said.

We previously stated $36-$38 seemed to be the meeting point and though Microsoft backed off over the weekend, it appears now that Yang is wondering if he did enough to get shareholders the price they deserved. After all, many have held on in spite of languishing stock prices that were below $20 prior to the takeover bid.

Your move, Microsoft?