Yahoo! (YHOO) Turns To Microsoft (MSFT) For Help

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Now that Google (GOOG) has walked away from a deal to sell search advertising for Yahoo! (YHOO), the portal company has to come up with a way to replace all that money. Yahoo! could go through another round of lay-offs, but at some point, who is left?

No one would argue that the best deal for Yahoo! was always the deal to sell to Microsoft (MSFT). Yahoo! is sending signals that it is open to talk.

According to Reuters, "After nearly a year spent seeking alternatives to Microsoft Corp’s buyout offer, Yahoo Inc’s Chief Executive Jerry Yang said he believes a deal between the two is still the best option for the beleaguered Internet company."

Too bad for Yang and his shareholders that Steve Ballmer has watched Yahoo!’s share price drop from the $33 he offered to $14. It is hard to imagine a new offer will be even close to $20.

Douglas A. McIntyre