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Ballmer says “No” to a post-Yang Yahoo buyout

Posted by Kelly Hodgkins on Nov 20, 2008 8:49 am 9 comments
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Ending speculation that another Microsoft-Yahoo deal may be on the table after the exit of Jerry Yang, Steve Ballmer said at a Wednesday shareholder meeting “Let me be clear. We are done with all acquisition discussions with Yahoo.” His announcement sent Yahoo’s shares into a 20% nosedive, closing at $9.13 at days end. Ballmer did tell shareholders that Microsoft may still be open to a search deal with Yahoo but those slightly encouraging words did not soften the blow of his comments dismissing a possible acquisition. Is this really the death knell for a Microsoft-Yahoo merger? Maybe, maybe not. Some analysts have interpreted Ballmer’s comments as a move to drive Yahoo prices down so Microsoft can scoop it up while its stock is obscenely low. Other analysts claim Microsoft is playing a waiting game; waiting to see if Yahoo has enough mettle to begin to pull itself out of this mess and waiting to gauge the regulatory environment of the upcoming Obama administration before they consider another acquisition offer. Either way, a merger is not happening anytime in the foreseeable future. It is now up to Yahoo to find a whizbang CEO that will begin to lift it out of its financial decline.

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9 comment(s) for this post.

  1. On Nov 20, 2008 @ 9:01 am, 1adonis1 Said:

    Yang totally screwed up Yahoo! LOL@the 20% nosedive.

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  2. On Nov 20, 2008 @ 9:46 am, MadMike Said:

    Bye Bye Yahoo.

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  3. On Nov 20, 2008 @ 10:06 am, Bbtrapped Said:

    Long live yahoo!

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  4. On Nov 20, 2008 @ 10:14 am, tony Said:

    microsoft is being kinda dicky about it now. you know they want yahoo.. they’re acting like a stubborn child.

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  5. On Nov 20, 2008 @ 11:06 am, empresario Said:

    MS is trying to leverage themselves even more for a future bargain purchase.

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  6. On Nov 20, 2008 @ 11:09 am, MadMike Said:

    They could be trying to sabotage the stock price. The stock did jump 20% when Yang left.

    They would probably wait to the last possible minute before purchasing Yahoo now. Just when they are siphoning dry their last bits of cash to stay afloat.

    Get them on the cheap. The economy sucks right now, so even Microsoft needs to save money.

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  7. On Nov 20, 2008 @ 11:42 am, ChrisNYC Said:

    @tony

    “you know they want yahoo.. they’re acting like a stubborn child.”

    He’s just using the Ellison handbook….deny any interest, then wham-o!

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  8. On Nov 20, 2008 @ 9:24 pm, mangenius Said:

    I know if I was Ballmer I would tell everyone how excited I was to purchase the company and watch the Stocks jump in anticipation and pay just a little bit more so I dont appear to be acting like a child

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  9. On Nov 20, 2008 @ 9:25 pm, mangenius Said:

    sarcasm

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