Yahoo: We're ready to do deal with Microsoft

Yahoo was hit with a one-two punch Monday--first a right jab from Carl Icahn, which is calling for the removal of Yahoo's entire board, and then a left hook from Microsoft, which confirmed its support for Icahn's proxy fight and said it's interested in negotiating a deal with a "new" Yahoo board.

Microsoft, in its public statement, said it could see the value in a potential Yahoo deal, to either purchase the 'search' function with large financial guarantees, or alternatively, purchase the whole company--a been there, done that attempt with Yahoo's existing board.

Yahoo counterpunched later Monday morning, issuing a statement (given here in its entirety) expressing its interest in talking to Microsoft about a buyout of the entire company, if only someone would make an actual offer, and the right kind of offer:

Yahoo!'s Board of Directors continues to stand ready to enter into negotiations with Microsoft Corporation for an acquisition of Yahoo!. Indeed, as recently as June, Yahoo!'s independent directors and management approached Steve Ballmer about just such a transaction, only to be told that Microsoft was no longer interested even in the price range which they had previously proposed. Now Mr. Ballmer and Mr. Icahn have teamed up in an apparent effort to force Yahoo! into selling to Microsoft its Search business at a price to be determined in a future "negotiation" between Mr. Icahn's directors and Microsoft's management. We feel very strongly that this would not lead to an outcome that would be in the best interests of Yahoo!'s stockholders. If Microsoft and Mr. Ballmer really want to purchase Yahoo!, we again invite them to make a proposal immediately. And if Mr. Icahn has an actual plan for Yahoo! beyond hoping that Microsoft might actually consummate a deal which they have repeatedly walked away from, we would be very interested in hearing it.

[Zen-Masta]

It would kind of suck for yahoo to sell off search only. That is the foundation of the company and I realize there is more to yahoo than search but I feel it would be better to take all or none. I think yahoo is dreaming if they're going to get more money. If Microsofts offer was such a lowball why doesn't Google one up Microsofts bid? oh yeah, because they realize it's not worth it.

[chrisx1]

You don't understand things.
Google cannot buy Yahoo! at any price. It would never be approved due to antitrust.

[professionaladventurer]

What does Yahoo! do anyway. Are they the new AOL?

[JCPayne]

Time to start making cool apps for Google Mail to make that even better....

[Reallyeh]

Carl Icahn is a business bully out to make money only for himself and rip up the company until there is nothing left. He uses the proxy battles as he has done in many other dealings to force a company to a buy out, and does not care about the end result because he makes the $$$$.

And we know all about Microsoft's dealings they seem to be the perfect pair ready to destroy and a great Internet company.

I think Yahoo's tough stance is AWESOME and hope they fight to the bitter end so they don't end up like one of Carl Icahn's destroyed companies such as TWA.

Google, continue to help Yahoo, they need all the muscle against these bullies!!

[daengbo]

MS isn't interested in making the same offer that they made months ago? What kind of statement is that? Thing have changed. Yahoo! is down in the market. Why would MS make the same above-market offer they made months ago?

Yahoo! is acting like a teenager here. "But it's not fair! You said you pay that price before ...." They need to grow up and accept the responsibility for their actions.

I hate MS, and even I can see that Yahoo! is wrong.

[naterandrews]

I don't see why Yahoo! can't push a harder defense. If they want to actually come off as a strong opponent of these two, push their past histories upon them- Ichan's board battling past and his inability to actually look beyond his own well being (NOT the well being of Yahoo!'s investors), and Microsofts' sordid past with monopolistic tendencies, overreaching power grabs, and customer lock-in. Sure, it may not be the "professional" press release, but come on Yahoo!, put more bark in your bite. These second-rate people (Ballmer and Ichan) have holes in their armor as well, EXPLOIT THEM!

[microboooo]

Google is going to fumigate Microsoft out of the planet so hard it's not even funny. Even if Microsoft were to acquire Yahoo, Microsoft is literally scared CHICKEN and its flapping its wings crazy but just can't fly.

I mean let's face it, Microsoft is a company of the past. They don't really have the talent they used to or else they would be using it to make their search engine better.

I think Google actually wants Microsoft to buy Yahoo and when it knows that it did, Google will reply quickly knowing Microsoft is down $40 Billion.

Google pretty much knows that both Microsoft and Yahoo combined can't compete with it and as soon as people know Microsoft owns Yahoo, they'll discontinue using Yahoo's services and Google will be right there to the rescue.

So for Microsoft it's a no win situation. Without Yahoo, there search volume keeps tumbling as it is, with Yahoo, they lose customer base cause who in the heck actually likes Microsoft.

And in the midst of this our friend Google which everybody just loves, prepares to dismantle Microsoft.

[microboooo]

Google is going to fumigate Microsoft out of the planet so hard it's not even funny. Even if Microsoft were to acquire Yahoo, Microsoft is literally scared CHICKEN and its flapping its wings crazy but just can't fly.

I mean let's face it, Microsoft is a company of the past. They don't really have the talent they used to or else they would be using it to make their search engine better.

I think Google actually wants Microsoft to buy Yahoo and when it knows that it did, Google will reply quickly knowing Microsoft is down $40 Billion.

Google pretty much knows that both Microsoft and Yahoo combined can't compete with it and as soon as people know Microsoft owns Yahoo, they'll discontinue using Yahoo's services and Google will be right there to the rescue.

So for Microsoft it's a no win situation. Without Yahoo, there search volume keeps tumbling as it is, with Yahoo, they lose customer base cause who in the heck actually likes Microsoft.

And in the midst of this our friend Google which everybody just loves, prepares to dismantle Microsoft.