Yahoo To Be Sold For Parts

The technosphere is awhirl (see The Humiliating Detail Yahoo (YHOO) Left Out of Its "Microsoft Timeline", Ballmer on Yahoo Deal: The Bankers “screwed everything up.”, and Microsoft Not Done With Yahoo, Circling For The Kill - GigaOM) with new news from the WSJ, suggesting that Microsoft is now trying to enlist others to aid in dismembering Yahoo. Seems Ballmer just wants the search business, so he can take a run at Google:

[from Microsoft Seeks Partners For A New Run At Yahoo By Matthew Karnitschnig and Robert A. Guth]

Microsoft Corp...has approached other media companies in recent days about joining it in a deal that would effectively lead to Yahoo's breakup, say people familiar with the discussions.

Microsoft has held discussions with Time Warner Inc. and News Corp., among others, say people involved in the talks. In the past, Microsoft has floated an arrangement under which it would acquire Yahoo's search business and another partner, such as News Corp.'s MySpace or Time Warner's AOL, would combine forces with what remained of Yahoo. News Corp. is the owner of Dow Jones & Co., publisher of The Wall Street Journal.

Some of the people familiar with these talks say they are preliminary and unlikely to result in a deal with Yahoo. Indeed, two weeks ago, Microsoft Chief Executive Steve Ballmer called Yahoo Chairman Roy Bostock to suggest they meet to discuss a new idea involving other partners, according to a person familiar with the matter. The meeting, scheduled for Monday, was subsequently canceled by Microsoft, which Yahoo took as a sign that Mr. Ballmer's efforts to find a partner have so far failed.

So, what a surprise.

Given the fact that Yahoo acquired or built a few dozen social applications and never integrated them in any serious way (Flickr, delicious, mybloglog and 360º all jump to mind), it's no surprise that folks can look the 'company' over and see the neat little perforations just screaming "Spin me out! Please spin me out!"

Considering the recent brain drain there seems no plan to save Yahoo. It's just a question of which vulture will get the eyes, and who will be left with the guts.

Vultures eating a Gazelle, originally uploaded by appenz.

Yang seems left with no options other than performing the break up himself, which could lead to a slightly better deal for shareholders, but not very much of one.

[Update: 10:45am 2 July -- Fred Wilson also sees the wild animals rending prey as a suitable metaphor for what is happening here.]