Will Jerry's Departure Bring Microsoft Back To The Table?

Will Microsoft revisit the idea of buying Yahoo in light of Jerry Yang’s departure? Almost certainly. Will this lead to another Microsoft bid for the company? We doubt it.

We think Microsoft really did realy did decide last summer that it didn’t want to acquire Yahoo. Jerry and Yahoo’s board were part of this decision, but probably not all of it. Steve Ballmer will almost certainly reconsider the possibility of buying Yahoo now that a new CEO might bring a fresh perspective. But unless Yahoo pushes for a sale at a super-low price, we doubt he’ll be aggressive about it.

A search deal, however, is a different story.  Any negotiations between Microsoft and Yahoo will likely be on hold until Jerry’s successor takes control. But we then expect serious search-partnership negotiations to begin in earnest.

See Also: Jerry Out

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