Filed under: Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Motorola (MOT)
Comments by Microsoft (NASDAQ: MSFT) CEO Steve Ballmer might leave raider Carl Icahn in a difficult position. Ballmer states his company will not bid for Yahoo! (NASDAQ: YHOO) Ballmer made his comments overnight from Israel.
According to Reuters, Ballmer said “Yet, we’re trying to have discussions about deals with Yahoo that might create value but not a whole acquisition of the company,” he said without elaborating further.
It is generally understood that Icahn and his fellow investors don’t think they get much benefit from their move to control Yahoo! if they do not get Microsoft to come back to the bargaining table with a $33 bid. A link-up with Microsoft or Google (NASDAQ: GOOG) in the search business might save Yahoo! some money, but not enough to keep its share price high. Before the Microsoft bid, Yahoo! traded at $19. $27.48.
The news from Microsoft points out the danger of being a raider. Icahn put money into Motorola (NYSE:MOT) thinking the company would spin-off its handset unit. Sales at that business are so bad that selling it has become nearly impossible.
Icahn wins his share, but Yahoo! might not get onto that list.
Douglas A. McIntyre is an editor at 247wallst.com and author of Ten Stocks Under $10.
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