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Microsoft Manages To Buy a Small Chunk of Yahoo After All

Everyone who's anyone -- at least, anyone who watches Jim Cramer on CNBC -- knows Microsoft tried to buy Yahoo for an amount that would have Detroit execs doing cartwheels (and maybe even restructuring their operations). Microsoft gave up that quest (and actually, buying Quest would've been a much smarter idea) and refuses to be pulled back in, no matter how much Yahoo shareholders beg.

But Microsoft did snag at least a chunk of Yahoo, and though I wasn't privy to the negotiations, I'm sure it wasn't anywhere near the $33 to $55 billion Microsoft almost paid for the company. Instead Microsoft recruited Yahoo's Dr. Qi Lu to lead Redmond's Online Services Group as president.

I make fun of Yahoo for falling behind Google, but let's face it -- who hasn't? Some wonder if Lu can be a liaison and help craft a search partnership between Redmond and Santa Clara, Calif. (where Yahoo's based). I guess this all depends on how mad Yahoo is that Lu left.

Meanwhile, Steve Ballmer says he may be interested in a Yahoo search partnership, but there've been no talks yet.

Posted by Doug Barney on 12/09/2008


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