Ballmer commented that the transaction would still "make sense economically" for both companies shareholders. He noted, however, that Yahoo! would probably still want the extraordinarily high price he offered months ago. He knows that a new offer would be more likely to be in the range of $18 to $22, if it were to make any sense. Yahoo! has been losing market share in the search engine business and is expected to report poor earnings.
Ballmer may also be messing with the deal conversations between Time Warner (TWX) and Yahoo! about whether they would merge AOL into the portal company.
Yahoo!’s shares are up 9% on the news
Douglas A. McIntyre