It was on this blog that some months ago I wrote that Steve Ballmer was going to put Jerry Yang out of his misery by buying his company and integrating it with Microsoft's sagging online search advertising business. Well, there have been much push and pull and even walk away…. fortunately for Microsoft.
A recent Wall Street Journal article on Yahoo searching for bottom (sub. required), pointed out that if the deal had happened when it was first approved, it is possible that the deal would still have been waiting for regulatory approval and at $33/share (Yahoo! closed at $12.29 on Friday), the $20 billion premium would have been looming large on shareholders' minds.
Of course, at that steep decline, even Jerry will have to consider a premium at 30% less than Steve's original offer.
UPDATE October 16, 2008:
STEVE BALLMER MENTIONS THAT A DEAL WOULD MAKE SENSE ECONOMICALLY (Wall Street Journal subscription may be required), BUT NO DISCUSSIONS YET.
