New Microsoft / Yahoo! Deal? Yes, No, Maybe?

By Michael Santo
Editor-in-Chief, RealTechNews

Depending upon who you are listening to today, Microsoft either still has no intention of dealing with Yahoo!, is back to discussing a buyout of Yahoo!’s search engine technology, or is back to discussing a total buyout.

According to News.com, Microsoft is looking at sweetening the deal for Yahoo!’s search technology, according to a “major investor who has been in contact with both parties.”

It was just about 1 1/2 weeks ago that Microsoft said any such deal over Yahoo!’s search technology was off for good, however. At the same time, Yahoo! announced its ad team-up with Google.

The blog TechCrunch said a deal for the full company is back on the table, citing “multiple sources at both Yahoo and Microsoft.”

And finally, CNBC says “There is no deal for the whole company, and nothing has changed as of today,” according to a source close to Microsoft.

Yahoo! shares were up as much to as much as $23.71 (from yesterday’s $20.60 close) but then dropped back down, presumably after the CNBC story, and currently sits up about 1.5% at $21.77.

Personally, it’s hard to figure out exactly what’s going on. It is clear that both Google and Yahoo! put several clauses into their ad agreement which cover such possible deals, so it seems like everyone involved feels there’s still some chance of a deal happening. What’s unclear is the probability - and how Carl Icahn will react.