• D: All Things Digital , Wednesday, November 19, 2008 11:30 AM

Why hasn't Microsoft Steve Ballmer come back and made another bid for Yahoo at discount prices? Kara Swisher points out that the Microsoft CEO simply does not want the whole Yahoo, even with Jerry Yang's imminent departure.

However, that's not to say that Microsoft execs weren't happy to hear that Jerry's leaving, as this could facilitate the deal that Microsoft does want: a search advertising partnership, similar to the one that recently collapsed with Google. "They are ready to move, as soon as it becomes clear who is in charge at Yahoo," one source says. "They don't want to appear too eager, but also don't want to lose this one."

Swisher points out that such a deal will not bring Microsoft "in even close range" of Google, but it is most likely to be done, given the pressure on Yahoo to do something to boost its flagging share price. Inside Sunnyvale, there is a movement of execs who feel that separating search and the company's other businesses is dangerous to Yahoo's future, but it's hard to imagine the board picking a new CEO that doesn't want to pursue some kind of deal with Microsoft, Swisher says.

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