Evsion Lab

The entire Microsoft-Yahoo saga is now starting to look really sad for Yahoo. After Jerry Yang’s statement yesterday that Yahoo is suddenly interested in being acquired by Microsoft, Steve Ballmer now responds with a firm no.

“We are not interested in going back and re-looking at an acquisition. I don’t know why they would be either, frankly,” he said. “We tried at one point to do a partnership around search, not advertising. That didn’t work either, so we moved on, and they moved on.”

Although it’s still questionable that getting acquired by Microsoft is a good thing for Yahoo in the long run, now that it’s seemingly out of their grasp, any other deal (for example, the rumored AOL merger) will seem like a desperate move. Even if Ballmer is just trying to wreck Yahoo some more and get an even better deal, Yahoo is in an awful position to negotiate; they’ve tried several avenues, and all of them turned out to be dead ends.

Now, the best - and probably only - thing they can do is get new management, and start working hard at building value for their shareholders. The ship has been sinking for quite some time, and those who wanted to leave already left. Time to go back to the old drawing board and start from scratch.

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