Microsoft released the following statement regarding Yahoo:

“In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.

“There of course can be no assurance that any transaction will result from these discussions.”

What is Microsoft trying to pull?!?! Aside from the obvious grammatical errors (where is the closing parenthesis?), this statement has got to be one of the worst bluffs I have ever seen. I CAN SEE RIGHT THROUGH YOU STEVE BALLMER.

Let’s break down the statement, shall we?

“Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!”

Wait, let me get this straight, not ALL of Yahoo!? Is Microsoft attempting to buy a portion of Yahoo at an overvalued price? (Facebook, ahem ahem) I highly doubt it. If they do, it’s time for me to cash out. Maybe Microsoft wants Yahoo’s price to plummet so they can pick up the rest of the shares on the cheap… just maybe.

“Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.”

I’ve always liked the word “but” - it always adds flavor to something as dull as a press release issued by Microsoft. It’s interesting that Microsoft comes out swinging by reasserting the fact that they are NOT interested in the acquisition of Yahoo, BUT RESERVE THE RIGHT to reconsider. Sorry Steve, your poker face isn’t doing too well at hiding the truth; it actually makes you seem more desperate.

If Carl Icahn is as shrewd as he seems, he probably saw right through this statement. My guess is that Microsoft is trying to look less needy for Yahoo in hopes of acquiring Yahoo for lower than $33 a share.

My advice to Steve: stop playing games and just put the deal back on the table already. If anything, you should thank Icahn and Yahoo shareholders by upping the bid to $34 a share - just a thought.

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