The Google-Yahoo deal has fallen apart. For those not following this too closely, Google was interested in providing much of the advertisement that shows up on the Yahoo search results. Yahoo pursued this deal after the negotiations with Microsoft fell apart. Microsoft offered to buy Yahoo for $34 a share. Jerry Yang was convinced this was way too low despite the fact that his company's stock was trading at $20 before the deal was announced.
So now, after Google has left the party, and Yahoo stock is trading around $11, Jerry Yang has the nerve to say that it is in Microsoft's best interest to buy Yahoo? What world is he living in? I mean seriously, Yahoo is on the verge of going under. They have no real business model going forward. Especially not one that can survive a severe downturn in the U.S. Economy. After all is said and done, Microsoft will still be around and so will Google. Yahoo will not be unless it finds someone to buy it. And yet Jerry Yang is going to tell Microsoft that it's best option is to buy a company that has a failing business model, a stock that price will continue to get cheaper, and a culture and technology that probably won't integrate all that well with Microsoft?
If Microsoft was smart, they pass on this one. They already turned the page and it is best to leave it turned. If they really feel compelled to make an offer, just wait it out. Yahoo isn't going anywhere. Best to leave it be and let it get on the brink of bankruptcy before you buy it. What is the rush now? Does anyone, even Yahoo, really believe it will get stronger as the economy gets weaker? How is Jerry Yang in any position to tell Microsoft what is best for it?
That would seriously be like me telling Jessica Alba that her best option would be to date me after I had ditched her to go on a date with Jessica Simpson. And my statement would have more truth to it than what is coming out of Jerry Yang's mouth. While I'm a great guy, I'm sure Jessica has plenty of options without me. And would it really be reasonable for me to expect her to consider me after I went on a date with another woman, even one as hot as Jessica Simpson?