Attention Microsoft: Yahoo 'not opposed' to sale of search business

by Stevie Smith - Feb 26 2009, 17:00

It seems that recessional pressures, plunging share values and the recent appointment of Carol Bartz as CEO have all contributed to Yahoo performing an abrupt about-turn in its apparent unwillingness to sell off its powerful search business.

Speaking at the Goldman Sachs Technology and Internet Conference on Wednesday, Yahoo Inc.’s chief financial officer, Blake Jorgensen, said the Internet pioneer is “not opposed” to penning a deal that would see its search assets either sold off completely or shared through a partnership agreement.

However, while outlining the company’s seemingly flexible standpoint, Jorgensen was also keen to stress that any such deal would need to be executed for the right reasons and the right economics as Yahoo’s search business is intertwined closely with the company’s other products and properties.

According to initial analyst and industry reaction, Yahoo’s posturing is possibly an attempt to lure Microsoft Corp. back to the negotiating table after vehemently fighting off the American software giant’s $47.5 billion USD acquisition attempt during 2008.

During the bitter battle of corporate attack and defend then Yahoo CEO Jerry Yang insisted Yahoo was worth more than Microsoft’s offer, running the risk of an aggressive proxy boardroom takeover by holding out for a significantly higher price.

Yahoo’s share value subsequently dropped well below Microsoft’s evaluation after the Redmond-based company suddenly shelved its interest and sought alternative ways to boost its search market presence. Yang lost his position soon thereafter.

Appointed in January of 2009, new CEO Carol Bartz has said she did not take up Yahoo’s reins to simply start selling off its search business or other valuable assets. However, she has also indicated a willingness to investigate possible deals that re-ignite Yahoo’s growth, commenting that, “everything is on the table.”

While Jorgensen didn’t mention Microsoft directly while speaking at the conference, any deal giving Microsoft a better command of the search business would certainly be attractive as it continues in its efforts to reel in market leader Google Inc.

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