Yahoo’s struggle for independence

On this 4^th of July weekend, let us celebrate the independence of Yahoo — for however long it lasts. Because just when you thought Microsoft’s bid for the Yahooligans was really truly deeply ultimately finally over, it really isn’t. At least, according to the Wall Street Journal, which published a report on Wednesday titled Microsoft Seeks Partners for a New Run at Yahoo.

What’s most interesting about that story isn’t that Microsoft is yet again thrusting at Yahoo’s windmills, with either Time Warner or News Corp. as Sancho Panza; it’s the almost surreal descriptions of the negotiations that have taken place so far. Like this, for example:

With both companies concerned about leaks, Microsoft took pains to ensure that the meeting remained a secret. It instructed Mr. Yang and his coterie of advisers to drive to the back of the building, where a woman holding a closed red umbrella would be waiting for them at the loading dock.

Or this:

The two sides met at the airport, in a conference room overlooking the runway. The Yahoo camp was encouraged that Mr. Ballmer had donned a polo shirt in purple, Yahoo’s color. For several hours, the men discussed Microsoft’s proposal to acquire Yahoo’s search assets.

Secret meetings at airports and golf courses. Codes sent via a red umbrella and a purple polo shirt. Who knew the Microsoft-Yahoo soap opera was really a dime-store spy novel in disguise?

The underlying theme of the story: Despite all public appearances to the contrary, Yahoo very much wanted to be acquired by Microsoft, even dropping its asking price to $33 a share — and that it was Ballmer who spurned them, not the other way around.

Such a painstakingly detailed report could only come from someone very high up the food chain in one of the two companies, and it almost certainly has to be Microsoft.

Why? Because the Wall Street Journal is Microsoft’s designated leak recipient of choice. Nearly every major story involving Microsoft over the last few years has been broken by the Journal. And that’s how MSFT wants it. They get to control the spin.

Reason 2: Yahoo’s Jerry Yang and Roy Bostock come off looking like oafish amateurs, at first ignoring Microsoft’s advances and then desperately hiking up their skirts for Redmond.

Once the meeting had broken up, [Yahoo director] Burkle told Messrs. Bostock and Yang that they had done everything they could to woo Mr. Ballmer. “We took all of our clothes off,” he joked.

Hmm, in whose interests would it be to spin that story, with Yahoo’s annual shareholder meeting coming up and Carl Icahn breathing down their necks? I see the fingerprints of Ballmer, the master of FUD, all over this one.

Stay tuned, as they say, for further developments.

Got hot tips or more dirt on Steve “the spy who shoved me” Ballmer? Post them below or e-mail me here – cringe (at) infoworld (dot) com. And have a happy 4th.