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Microsoft Still Interested In Yahoo Search Deal

Bruised Giant Microsoft has not yet given up on hopes to snatch a last-minute search deal with Yahoo at some point in the (near future) according to Kevin Turner, the Chief Operating Officer at Microsoft.

In an interview with The Times of London, Turner re-opened the bridges between his company and Yahoo, which seems to be have been rejuvenated by the arrival of feisty Carol Bartz, its new Chief Executive Officer.

Turner let slipped that “[Microsoft] certainly made her aware and the Yahoo! board aware that if they are ever interested in an opportunity to partner with them on search, we’d like to sit down and at least have the conversation. It has to make economic sense to both parties.”

It's been more than a year now since Microsoft made a $47.5 billion offer to acquire Yahoo outright, something that the then-CEO Jerry Yang ultimately rejected, saying that it undervalued the company. Yang was then ousted and Yahoo Share prices slipped by more than half since then. The company is currently valued at around $17.65 Billion.

Turner's words were delicately laid and couldn't have been uttered without the explicit approval of Steve Ballmer, Microsoft's CEO and Turner's Boss. Yahoo is still one of the biggest players on the market and the only one that has a (remote) chance of challenging Google in the long run.

Kara Swisher of AllthingsD astutely notes that Turner is the THIRD top Microsoft brass to publicly come forward and express those "warm" sentiments towards a former arch-enemy.

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Our Comments

Microsoft will get Yahoo sooner or later. All the rhetoric about not being interested in partnering with the search company are just non-sense as far as we are concerned. Microsoft is still lagging way behind either Google and Yahoo and it would be frivolous from Microsoft's part to ignore the benefits of strategic collaboration with Yahoo.

Related Links

Microsoft reopens door to deal with Yahoo!

(Times Online)

Microsoft to Yahoo: Let's talk


Microsoft Reopens Agreement with Yahoo


MicroHoo: Stop Them Before They Publicly Negotiate Again!

(All Things D)

Microsoft's Turner: Yahoo! search deal, but no acquisition

(The Register)

OK. We get it. Microsoft wants a search deal with Yahoo


Microsoft still wants to strike a deal with Yahoo!