Parsing Microsoft: We've Moved On From Yahoo... To Yahoo

Having repeatedly said it had "moved on" after withdrawing its original bid two weeks ago, Microsoft issued a statement Sunday afternoon revealing that it was sniffing around Yahoo again, possibly something along the lines suggested by SVI's Henry Blodgett back in February.

The statement is purposefully cryptic about the details of the potential transaction, raising more questions than it answers, and sent tech industry reporters scrambling in multiple directions. Most notably, BoomTown's Kara Swisher says the new deal might simply be the acquisiton of Yahoo's search business, while the WSJ's Roberet Guth indicates that it may just be an ad alliance.

Despite prompting such divergent speculation, the statement delivers just enough information to ensure the initial coverage of the new overtures will at least not be unhelpful to Microsoft. Specifically, the statement pre-empts leaks that might have characterized the new deal as another full-blown acquisition, which would have set public expectations Microsoft would surely want to avoid, given the widespread second-guessing the company and CEO Steve Ballmer have already endured.

Here's the parse.

Microsoft: Microsoft Corp. today issued the following statement:

Translation: We wanted to get out ahead of this thing, so it would break on terms. And we're not releasing a letter this time, because we want to minimize this saga being personally attributed to Ballmer.

Microsoft: In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc.,...

Translation: Now that Jerry and Bostock are feeling the hot breath of someone a lot scarier than we are...

Microsoft: ...Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business.

Translation: Dude, we have so moved on.

Microsoft: 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!

Translation: We've moved on to pursue an alternative deal with... uh, Yahoo. But it's a different kind of deal.

Microsoft: Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time...

Translation: We've had time consider all the reasons that it was a dumb deal to begin with. And now that Carl has given Jerry a new perspective on things, we've developed a transaction that might actually make more sense to our shareholders.

Microsoft: ...but reserves the right to reconsider that alternative ...

Translation: ...but reserves the right to try and do the dumb deal again.

Microsoft: ...depending on future developments and discussions that may take place with Yahoo! or Microsoft or with other third parties.

Translation: Either we don't use our own Grammar check tool, or we've just confirmed Microsoft might have conversations with Microsoft.

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

Translation: We're clearly in a better position, thanks to Carl. We know exactly what we want to do, but those other guys are really squirrely.

UPDATE: Yahoo responds, and Jack Flack parses.