by Sarah Lacy
In his Saturday missive, Microsoft CEO Steve Ballmer cited Yahoo's proposed partnership with Google as a key reason for not going hostile. Ballmer said such an arrangement "would fundamentally undermine Yahoo's own strategy and long-term viability by encouraging advertisers to use Google as opposed to your Panama paid search system."
Yahoo President Sue Decker disputed that assertion in the second part of my interview with her Monday. Decker says the Yahoo-Google search test was "helpful" but that Yahoo will remain a "principal" in both search and display. (For part one of the interview, click here.) She didn't rule out a possible deal with AOL or a stand-alone strategy.
Decker acknowledged the anger and disappointment among some Yahoo employees who wanted the Microsoft deal. But, she added, there's a "greater sense of urgency" now at Yahoo, and "I think you'll find as many excited to show the world what they can do."
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