Ballmer: to buy Yahoo or not to buy Yahoo?

With the presidential election, we are hearing lots of so-called "parsing." Basically, this involves using code words to score some points.

Well, the same goes for takeovers, especially Microsoft's (Nasdaq: MSFT) fight for Yahoo! (Nasdaq: YHOO). For example, according to a report from the Wall Street Journal (subscription required), Microsoft's CEO, Steve Ballmer, said his company may actually give up its fight.

Hmmm....that's certainly interesting. Looking at the long history of Microsoft, I can't remember the company ever quitting (or at least admitting to it).

True, it sounds like some of the employees at Microsoft are concerned about the deal. But, hey, the company has thousands of employees. When should a major strategic decision be based on compromise and consensus?

Basically, Ballmer is engaging in "word play." That is, he is trying to create some confusion to get some negotiating leverage.

Now, I think there's one thing that's pretty clear: Microsoft isn't going to raise its bid (which is currently $31 per share). After all, without a competing suitor, it doesn't make sense.

Basically, Microsoft is going to continue its pressure. And the next step is likely to be on the hostile side, with the proposal of a slate of board members.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.