With Yahoo! facing pressure from a corporate raider, the internet giant has reopened discussions on a tie-up with Microsoft, but for a new deal that would probably not be an outright takeover. The two firms said over the weekend that they were exploring new options two weeks after Microsoft withdrew its offer to acquire the struggling internet pioneer.
Microsoft can build a competitive online advertising business without Yahoo! but it "could just take more time", CEO Steve Ballmer told the <i>Wall Street Journal</i> in an interview published on Friday. The comment came as analysts and industry watchers awaited an imminent announcement on Microsoft's next move in its unresolved quest to acquire Yahoo!
Yahoo!'s rejection on Monday of Microsoft's buyout offer sets the stage for the United States software giant to up the ante or attempt a coup by ousting the internet firm's board of directors. Yahoo!'s board of directors spurned Microsoft's takeover bid, saying the $44,6-billion offer is too low.