Steve Ballmer Visits Silicon Valley, Yahoo Search Deal Rumors Buzz

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It started early Monday morning with Yahoo’ers chattering that the long awaited Microsoft search deal, first floated in the middle of last year when an outright merger was abandoned, may be near. Something internal at Yahoo set these guys off, and non C level executives got wind of it. The buzz started, with one call I received saying a deal was closing now. As in ASAP.

Much of this may have to do with the fact that Microsoft CEO Steve Ballmer is in Silicon Valley, and has been at least since the weekend. He’s speaking at an event Wednesday night, which explains the trip. But instead of just jetting in and out, he’s come days early. Why? Who knows, but that’s plenty of information to start the rumor mill going.

Our direct sources are telling us that discussions are progressing, as they have been for some time, but that major deal terms still need to be worked out. One source said not to expect a deal in the next few weeks.

Ever since Google was forced to bail on their own Yahoo search deal, some sort of alliance with Microsoft was inevitable. Well, inevitable just as soon as Yahoo got their CEO situation under control.

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