Yahoo would accept a deal from Microsoft, but not at the current price, according to a lengthy letter from Jerry Yang to his counterpart Steve Ballmer. But with Microsoft making clear that it has no intention of raising its bid, both sides appear mired in something of a stalemate.
"We are not opposed to a transaction with Microsoft if it is in the best interests of our stockholders," Yang said in the letter. "Our position is simply that any transaction must be at a value that fully reflects the value of Yahoo, including any strategic benefits to Microsoft, and on terms that provide certainty to our stockholders."
Monday's letter comes days after an apparently unproductive meeting between executives at both companies.
The letter also seems to have signaled a change in the two-month sparring match, with Yang personally pointing the finger at Ballmer by calling threats of a hostile takeover, "counterproductive and inconsistent with your [Ballmer's] stated objective of a friendly transaction."
Yang was referring to a letter sent by Ballmer to Yahoo's board on Saturday.
"If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective, which will be reflected in the terms of our proposal," Ballmer wrote.
Late last month, a deal between the two companies appeared to be imminent. However, that was before the personal animosity between Yang and Ballmer bubbled to the surface. If a deal is to come now, it will likely be after a more protracted battle -- one that could cost Yang and the rest of the Yahoo board their jobs if Microsoft decides a proxy fight is the only way to bring about a deal.
