Now that Google and Yahoo’s ad deal is off, Yahoo has renewed its bid to align itself with Microsoft. Jerry Yang today said that Yahoo has never rejected the Microsoft’s earlier bid.
Yahoo just wanted Microsoft to improve upon what was earlier offered. Now with Yahoo in unenviable position of having exhausted all their options, any deal which comes about will not be between equal partners.
With this reported comment from Jerry Yang, Yahoo’s share price rose to $14.72 (up by 5.7% from earlier close). But if this deal materializes right now, the settlement will be at a price much lower than what MSN had offered earlier. The earlier offered price per share was $33. Thanks to global meltdown, MSN if it rebids today the deal can only bring about $14-15 per share.