Microsoft-Yahoo: Act II

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It’s the summer movie season and sequels are always big at the box office, so why not try another shot at some kind of Microsoft-Yahoo blockbuster?

In a move seemingly designed to keep technology reporters and bloggers chained to their laptops over the weekend, Microsoft announced Sunday that it was “considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!” That was confirmed in a separate press release from Yahoo! which said the company “continues to consider a number of value maximizing strategic alternatives…we remain open to pursuing any transaction which is in the best interest of our stockholders.”

Translation: thanks for the push, Carl Icahn. We’ll take it from here.

Several tech reporters with access to sources within the negotiations say this time, Microsoft wants to either buy outright or partner with Yahoo’s search division and related advertising services. Jerry Yang’s company can keep mail, messaging, news; many Yahoo! fans have said on various blogs that the company had lost its focus on those business segments while trying to take on Google in online ads.

Not wanting to sound like a broken MP3 file, but it will again come down to whether Yang and his fellow original Yahoos can get past their emotions and Microsoft’s reputation within the tech industry. A looming Yahoo! proxy fight courtesy of Icahn could possibly be squelched by an expected Google-Yahoo! search ad deal, but maybe this alternative could chase Icahn away while placating angry Yahoo! shareholders still seething over the first failed attempt at a Microsoft deal.

All of that inside-the-boardroom intrigue is fodder for cable business network junkies. What about the average websurfing consumer who was worried that a complete Microsoft takeover would ruin Yahoo! and its features and services? What do you think about this possible sequel to the Big Tech Deal that Didn’t Happen?

Read [] Read [Yahoo!]

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