Microsoft’s $20 billion Yahoo deal: bogus?

By Alex Zaharov-Reutt
Monday, 01 December 2008 17:27

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Looks like the Times Online’s report about Microsoft offering $20 billion to buy Yahoo was bogus, with key figures in both the Microsoft and Yahoo camps saying there’s no truth to the story. The thing is, the denials could be yet more misinformation...

There’s no end-game in sight to the Microsoft Yahoo mega deal of the century, with the latest news, confirmed by AllThingsD’s Kara Swisher and TechCrunch’s Michael Arrington both claiming sources at Microsoft and Yahoo saying the report is wrong.

Yesterday’s Times Online report had a suspicious amount of detail, suggesting the newspaper had spoken to insiders with plenty of knowledge, or that some kind of big leak had occurred.

But Swisher claims that a “key player” at Yahoo says the report is “total fiction”.

Arrington says his Yahoo contacts say they’re busy looking for a new CEO since co-founder Jerry Yang stepped down, remaining as a temporary CEO until his replacement is found, while his Microsoft contacts say no deal is being negotiated whatsoever, with Arrington saying the Times got “pwned”.

One of the key players at Yahoo is Ross Levinsohn, and he told Swisher that the first he’d heard of the deal was the Times Online report, which must have come as a big surprise.

What we don’t know out of all of this is what’s truth or fiction, despite the latest denials.

Companies and governments like to deny all kinds of things before a deal is magically struck, taking everyone by “surprise” yet again thanks to all the denials.

This is especially so given Ballmer’s stated desire to still do some kind of a deal with Yahoo on search, and Carl Icahn’s desire to see a deal with Microsoft succeed, especially seeing as he’s bought up around 5% of Yahoo shares.

So... despite the denials from both sides... this story isn’t over yet, as the Microhoo roadshow that isn’t continues rolling on.