I had to laugh when I heard rumors concerning the new Microsoft-Yahoo negotiations. Let’s see, Jerry Yang turned down Microsoft’s (MSFT) original offer because (a) it substantially undervalued the long term prospects of the company, and (b) he wanted to keep the unique culture and spirit of Yahoo (YHOO).

In Jerry Yang’s blog to his employees (Ok, so now what?), he apologized for the three month distraction, but assured his employees of a bright future.

Most people think Yahoo's (YHOO) Jerry Yang is screwed. They argue that he has few, if any, options at this point. He either tries to renegotiate a deal with Microsoft (MSFT) or his days working at the company he founded with David Filo will soon be over.

Can Icahn Gain Control of the Board?

The best way to approach an analysis of conference calls and accompanying financial slides is to think like a magician. Remember the TV show where the magician gave away all the secrets to the illusions? It wasn’t what you saw that was important; it was what you didn’t see.

Therefore, it’s not important what they say on the call or what’s on the slides. It’s what they didn’t say. It’s what’s not on the slides.

I have already provided my advice to Yahoo regarding what I believe should be their general management focus in What Should Jerry Do? My Advice to Yahoo.

Assuming they listen, are they out of the woods? No.

Berkshire Hathaway (BRK.A), Yahoo (YHOO) and Microsoft (MSFT) have all been very successful companies. The ongoing success in any company depends a lot on the CEO’s management style. In each of these companies, the CEO’s are smart, intelligent, dedicated and extremely successful.

I thought it might be insightful to provide a light hearted parody to compare their management styles on different issues (at least as some people perceive them).

Alright, alright, I know. It’s funny to pick on Yahoo (YHOO) CEO Jerry Yang. It seems that a lot of people are doing it now. But before I get any more calls telling me what a nice guy he is, let me explain something.

I don’t doubt Jerry is a nice guy. Hell, if I had a couple of billion lying around the office, I think I would be a lot nicer too. I would even give my wife the extra $300 she wanted to go buy some more junk at the farmer’s market. Ok, ok, maybe not.

Jerry Yang commented in several interviews today that he did not understand why Microsoft walked. He was more than willing to continue negotiations. He made the classic blunder made by everyone who has emotional ties to their assets - he overestimated their value.

Let me give you a couple of examples from my personal history. When I was a graduating senior in college, I had just taken the CPA exam and was getting ready to go to law school. I had even locked down a summer job to help pay for it.

Before David Filo and Jerry Yang went to talk to Microsoft (MSFT) in an effort to finalize a deal to sell Yahoo (YHOO) to Microsoft at a share price above $37, they should have stopped and visited Apple's (AAPL) Steve Jobs.

Microsoft, Gates, Ballmer and company are very adept at co-opting competition or crushing it. Jobs failed to "cut a deal" with Microsoft in the 1980s and Microsoft walked. Instead, they developed their own Apple like interface and beat Apple at its own game.