Like the rest of us, Yahoo's negotiators don't understand what Microsoft CEO Steve Ballmer means when he says Microsoft wants to acquire just Yahoo's search business. Board members, fearing corporate raider Carl Icahn and his friends, would now prefer a full merger. Microsoft would be down with such a deal, except CEO Ballmer and company worry Yahoo cofounder Yang and Filo still won't accept a bid for less than $37 a share. We don't buy this excuse, if only because we've heard Yang and Filo don't have much say over negotiations anymore. Not after the high-fives.

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