Sources Say MicroHoo Is Back On

We’ve got multiple sources at both Yahoo and Microsoft telling us that official talks are back on between the two companies. But we’re hearing something different than CNET - the talks are about a full buyout again, not a sweetened search-only deal.

The information we have is thin, but what one source is saying that Microsoft is talking a price lower than the $33 they were offering when the talks disintegrated in May. Given Yahoo’s recent share price (it’s below $21 today), and the fact that just about everyone other than their board and top execs are publicly screaming for a deal, I’m not surprised.

Microsoft official comment is “no comment,” which actually contains more information than it appears to. For well over a month, Microsoft has officially been saying they’re no longer interested in Yahoo. They didn’t say that today.

Update (11:44 am PST): Additional sources say the Yahoo board offered to sell to Microsoft for the “low $30s per share, and below Microsoft’s original offer” immediately before they signed the Google search deal.

Update (11:47 am PST): From CNBC:

As mentioned at 13:29, CNBC commentator said that a source very close to Microsoft (MSFT), who is ‘in the know’ about negotiations between the two, empathically said there is no deal for the all of YHOO and nothing has changed as of today. Notes that discussions between the two about YHOO’s search business has always been on the table. Reiterates that no deal on the table for the whole co.

What we’ve heard is that the two sides are in current discussions over a complete buyout, not necessarily that there’s a deal in place or even that Microsoft has made any kind of firm offer. Another source at Microsoft reiterates to us that they’re a buyer at the right price, but isn’t saying what that price is.

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Comments

[Medici]

Wow.....SEC investigation coming on this one....

[decoflair]

We are all tired and disgusted with this situation.

[usbworks]

Michael, are you getting your information from a couple of administrative assistants at Microsoft? Either that or someone is intentionally manipulating the market for a quick pop. You realize that it is illegal, don't you?

[Mit]

Microsoft it is the responsible for all these rumors. They will kill very easy one of their competitors by purchasing Yahoo.

But there is hope even if Yahoo will be sinked. All the people that are doing a good job now on Yahoo will work tomorrow in small enterprises and will try to discover and innovate new products, better than the products made by Microsoft, even better than the products offered now by Yahoo.

Yahoo is the most visited site on the earth, it is strange that we can imagine such a scenario for this company.

[bato sa bato]

It is apparent that the on again-off again scenario between microhoo is a ploy to manipulate the market. The big players are the only ones raking the bucks!!!

[marketwatchr]

At $21 per share someone is going to offer to buy Yahoo at some price and do something with it while it still has value.

[StrictNon-Conformist]

You have sources that feel things emotionally going on? You really need to check your word usage when you write your posts ;) Ok, it looks like CNBC sent you that silly word usage text ;) (Or was it you typing it in wrong, etc.)

I still can't help but think that at this time, this is all a bunch of big stock holders attempting to manipulate the price of the stock to make a quick buck or million. I also doubt this would be Yahoo! insiders doing this, for at least a couple of reasons:

1. Most people with stock options are deep in the red right now anyway, so it isn't nearly worth the risk.

2. The amount of trouble that is involved clearly isn't worth it, with as much as Yahoo! is in the public eye and that of the SEC right now, with a looming showdown at the August 1st board meeting and a lawsuit by a bunch of idiots in charge of a Detroit retirement fund.

For the reason that it'd be harder to get a deal through, I also doubt anyone at Microsoft would be (that are truly involved) leaking such a thing, because at this point, there's more power probably by doing things behind the view of the public eye.

Bah, but this is just a blog ;)