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Time For Microhoo Round Two?

Microhoo Round 2? Probably not, says Kara Swisher. Despite the fact that Microsoft COO Kevin Turner tells The (London) Times that the software giant is still very interested in doing a deal, Swisher says that "if there were real and substantial talks going on right now between Yahoo and Microsoft...you likely would not hear a peep from them."

Actually, in the Times interview, Turner basically admits that there haven't been substantive talks: "We've certainly made (CEO Carol Bartz) aware and the Yahoo board aware that if they are ever interested in an opportunity to partner with them on search, we'd like to sit down and at least have the conversation. It has to make economic sense to both parties." Of course, these words follow similar sentiments recently expressed by Microsoft CFO Chris Liddell and CEO Steve Ballmer.

So, what's with the "carrot approach," anyway? For starters, Swisher points out that Yahoo's search share seems to have stabilized or even improved a little, putting the Web giant in an advantageous position with respect to Microsoft's Live Search, which continues to bleed search share, despite heavy spending on resources and personnel. Microsoft is also dealing with a very different leader in Yahoo's Bartz, who recently proclaimed: "I said this to Mr. Ballmer, I will not negotiate with you and 30,000 of my closest friends. I will negotiate privately....If something happens, you will know about it then." For the time being, it seems the tables have turned: Microsoft needs Yahoo more than Yahoo needs Microsoft.

Read the whole story at D: All Things Digital »

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