Yahoo Still Open to Microsoft 'Partnership'

30 May 2008

SUNNYVALE, California: Although it appears Microsoft has shut the door on further attempts at outright acquisition of Yahoo, the online portal's ceo, Jerry Yang (pictured), insists the two are continuing talks about some form of partnership to challenge the web dominance of Google.

Speaking at a conference in California this week, Yang said Yahoo was still "listening" to proposals from Microsoft. He and the latter's ceo Steve Ballmer reportedly met over a round of golf last weekend to exchange points of view.

Declared Yang: "Microsoft is no longer interested in buying the company and they are discussing various other partnerships with us.

"We definitely have to understand what they are proposing. They clearly have an interest in Yahoo and we need to understand more."

The company's board has been criticised by some shareholders for its rejection of Microsoft's sweetened $47.5 billion ((€30.7bn; £24.4bn) earlier this month and its lack of alternative growth strategy.

Angry investors, led by billionaire Carl Icahn, have threatened to unseat the Yahoo board, forcing the company to postpone its annual meeting.

The online firm has always maintained that Microsoft's offers undervalued it.

Data sourced from Wall Street Journal Online and BBC Online; additional content by WARC staff