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Microsoft: We're not done with Yahoo! yet

MicrohooJust when you thought it was safe to go back in the water (or at least use Flickr without fear that Microsoft would start requiring WGA validation), Microsoft released a statement saying it's not quite done with this whole Yahoo! thing yet. No, the company isn't putting another bid on the table for an outright acquisition of Yahoo!, but Microsoft isn't ruling that out either.

In a nutshell, Microsoft wants to make it clear that the company plans to expand its advertising and service businesses. And to that end, Microsoft has proposed some sort of an arrangement or partnership with Yahoo! Or maybe Microsoft wants to buy some, but not all of the search portal's properties. The statement doesn't really make it clear what Microsoft's after at this point.

A number of Yahoo! shareholders have expressed their disappointment with the way the Microsoft negotiations were handled (and the subsequent drop in stock price). So we could certainly see why Yahoo!'s leadership might be interested in some sort of a deal which could provide value for both companies, and more importantly keep shareholders from demanding Jerry Yang's head on a platter.

Tags: acquisition, merger, microsoft, news, partnership, yahoo