The Ceo of Yahoo has asked the creator of windows for another buyout offer. Although he said there arent any current talks, Yang stressed he and the rest of Yahoo Inc.s board “remain open to everything” after a looming legal battle with the U.S. Justice Department prompted Google Inc. to abandon its rival. Google would have sold some of the ads alongside Yahoos search results had the proposal panned out.

Yahoo had been counting on the Google alliance to boost its sagging profits and stock – an outcome that might have helped pacify investors still incensed about Yangs handling of a $47.5 billion takeover offer from Microsoft Corp. six months ago.

Microsoft said it withdrew its $33 per share bid after Yang demanded $37 – a price that Yahoos stock hasnt reached since early 2006.

Echoing his previous public comments, Yang said he believes a compromise on the sales price could have been reached if Microsoft hadnt ended the talks so abruptly.

“Did we want to do a deal with Microsoft? Yes,” Yang said. “Had we been able to do that, we would have been very happy but it wasnt meant to be.”

Microsoft has been giving mixed signals about its interest in Yahoo. Although the company repeatedly issued statements that Microsoft Chief Executive Steve Ballmer has moved on to other things, Ballmer suggested as recently as last month that buying Yahoo in its entirety or just its search operations could still make sense.

Industry analysts believe Microsoft will make another run at Yahoo within the next few months. The reason: Yahoos No. 2 search engine and huge audience still remains Microsofts best chance to gain ground on Google and its industry-leading search engine in the Internets lucrative advertising market.

Yahoo also looks more vulnerable than ever, having lost the Google partnership. The Sunnyvale-based companys shares closed Wednesday at $13.92 – nearly 60 percent below Microsofts last offer.

The stock gained more than 4 percent in Wednesdays depressed market, largely because some investors believe another Microsoft eventually will make another bid.

Wednesdays rally was driven, in part, by rumors that Yahoo already was negotiating a sale to Microsoft for $17 to $19 per share – speculation that both companies denied.

There was also talk that Yang would step down as CEO, but he said he still believes he is the right person to engineer Yahoos attempted comeback.

Yang said he was disappointed that Google didnt fight to protect their proposed advertising partnership in court, contending the Justice Departments conclusions were flawed.

The Justice Department said it was prepared to attempt to block the alliance because it would have consolidated more than 90 percent of the U.S search advertising market, turning Google and Yahoo into “collaborators rather than competitors.”

“I really thought the government in this case does not understand our industry,” Yang said. “They have a market definition that is too narrow.”

Yang predicted Yahoo would still prosper without Googles help. “I feel there is a presumption that if we dont have the Google deal, we arent going to do well in search. That is absolutely not true,” he said.

Source: iades