News.blog: Microhoo deadline passes with no news

The tech world -- at least the those fascinated by the mating rituals of tribes bickering over the size of the dowry -- is still waiting for word from Microsoft or Yahoo on their wedding plans.

The Saturday deadline set by Steve Ballmer for the two tribes to try to resolve their differences before Microsoft shifts gears has passed with no news.

Yahoo and its leader, Jerry Yang, continue the holdout for more than the $31 (£15)-per-share offer made on 1 Feb. Microsoft doesn't see a reason to bid against itself with no alternative bid having materialised at this point.

On Friday, Microsoft CFO Chris Liddell reiterated Microsoft's position: "We've been disappointed in the speed at which the transaction went. We put what anyone reasonable would say was an incredibly generous offer on the table to try to facilitate a speedy transaction." He added that instead of taking the case to Yahoo shareholders, Microsoft could also just walk away and return to its original 'organic' strategy.

A Wall Street Journal story notes that if Microsoft walks away, Yahoo's share price would likely drop from its Friday close $26.80. Given the $31-per-share bid was made when Yahoo was at $19.18 (a 62 per cent premium), Yahoo better have something up its sleeve beyond its just-announced Yahoo Open Strategy.

At this juncture, Yahoo teaming up with AOL seems the most likely alternative under consideration, but that's a far more risky path, especially with Yahoo trying to rewire both its technical platform and its user experience from the inside out and with Google continuing to increase its lead in the vital search category.

Stay tuned in the coming week as the mating rituals continue, unless Microsoft decides to increase the dowry or take a walk.