In the world of internet sagas, the biggest and most costly was the Microsoft acquisition of Yahoo that failed ultimately because of Yahoo CEO Jerry Yang. Yahoo repeatedly turned down purchase offers form Microsoft.
Microsoft CEO Steve Ballmer has said on more than one occasion that his company is no longer interested in acquiring all of Yahoo, but is interested in acquiring the search division. InformationWeek now reports that Ballmer believes that any potential acquisition of Yahoo search would be better done quickly than at a slower pace. Ballmer told The Wall Street Journal, "I think that good ideas are usually better done quickly than slowly, so it would probably be better for both of us, and certainly for Yahoo, if we were to do it sooner than later."
Microsoft hopes that adding Yahoo's number two ranked search service to its MSN and other search portals could be the push it needs to compete with Google in the online search market. Microsoft's MSN search portal is number three behind Yahoo and Google.
While Microsoft has yet to make a definitive offer for Yahoo's search service, speculation is climbing. This is in part pushed by Microsoft's hiring of Yahoo's former VP for search and advertising Qi Lu to head the Microsoft online services unit.
InformationWeek reports that Yahoo's stock price is very much at the whim of speculation at this point. Yahoo stock prices dropped by more than 13% after Ballmer told attendees at a business lunch that he was no longer interested in buying the whole of Yahoo.
Microsoft originally offered to buy Yahoo outright at $31 per share, but ultimately failed to complete the purchase because Yahoo's Yang believed the company was worth far more. The decision not to accept Microsoft's offer ultimately cost Yahoo shareholders $24.4 billion and led to Yang stepping down as CEO.