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Ballmer on Yahoo!: Price in mind and not "a dime" more
But what are the alternatives?

By Ina Fried

Published: Friday 02 May 2008

Microsoft chief executive, Steve Ballmer, told employees he has a figure in mind as to what Yahoo! is worth but doesn't plan to pay "a dime above" that amount, according to The Wall Street Journal.

But, at the same time, he concedes that there aren't a whole lot of other options for the software maker to add scale in its battle against Google.

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Ballmer told the Journal: "Look at all the properties on the internet - everything on the internet. There's really only five or six that really have any scale. Worldwide, you'd maybe get seven or eight."

Among those Ballmer named were AOL, Facebook, MySpace and Yahoo!, giving a sense of who might be part of Microsoft's "plan B" should it be forced to go that route.

But Ballmer has not been able to come up with another alternative that would enhance Microsoft's online advertising business the way Yahoo! would.

Ballmer told the Journal: "We like our strategy. We don't like our position. I'd like to have a better position relative to the guy who sells the most advertising."

The question remains just how far will Microsoft have to go to in order to get that offer to be considered. Microsoft had given Yahoo! until last Saturday to come to the negotiating table, although that deadline has passed.

Ballmer told employees on Thursday that he has a price in mind, according to Silicon Alley Insider, which reported details of the employee meeting yesterday.