On Again, Off Again: Yahoo & Microsoft

The story so far: after formally ending negotiations with Microsoft less than a fortnight ago, Yahoo's rebound guy, Google, isn't helping. Despite striking a search advertising outsourcing deal with the big G, Yahoo's stock continued to dwindle in value. $21.45 as of yesterday.

At the same time, whisperings of a "reorganization" at Yahoo help to further destabilize the company, not to mention upsetting its employees. Recent high-profile resignations haven't painted the company's future in brighter tones, either.

Unhappy investors have been waving about the 35% decline in Yahoo's stock since Microsoft's $33 per-share offer, which is now $12 prettier compared to current value.

CNet's source at Yahoo claims that "a lot of Yahoo directors are fed up with the process of what's been happening," and pointed to the displeasure with stock prices as a source of potential trouble.

There's more:

But the source noted that several of Yahoo's nine board members, including its chairman, Roy Bostock, have since indicated a willingness to hold further discussions with Microsoft on a possible deal to sell the search operations.

And then there's the infamous Carl Icahn (those were the days), who still holds onto his plan of gaining control of Yahoo's board. Drama!

Yahoo and Microsoft: Is it on again? [CNet]