Where are John and Todd?

The tech and financial blogs are abuzz today over Microsoft CEO Steve Ballmer’s reported comment that a Microsoft-Yahoo deal would still “make sense economically” for the companies’ shareholders. Ballmer made the remark at a Gartner conference, stirring speculation about the possibility of a new bid.

Silicon Alley Insider: Wake Up People: Ballmer Just Said He’d Still Buy Yahoo.

As the speculation spread, Microsoft issued this statement this afternoon: “Our position hasn’t changed. Microsoft has no interest in acquiring Yahoo!; there are no discussions between the companies.”

Deciphering the meaning of executive remarks can be tricky, at best, but for comparison, it’s worth looking back at what Ballmer was saying about Yahoo this summer. Here’s what he told analysts in July:

“We had a set of principles, we talked about them, it didn’t work out. Fine, we’re done. We can move on. Does that mean that nobody will ever talk to anybody again? I suspect the answer to that question is also no. It’s a long time in a big world, but we’re comfortable proceeding as we are on our own with our people, with our strategy, independent innovation and I think what we really still have in search and advertising is a two-horse race.”

How different is that from what Ballmer said today? It’s difficult to know without seeing the full context of his remarks, but the decline in Yahoo’s share price could give Microsoft more leverage than in the past. Yahoo’s stock recently dipped below $12, before rising more than 10 percent today after Ballmer made the comment. For the record, Microsoft’s original Yahoo bid was $31 per share.

At the same time, Microsoft’s shareholders may be more open to a Yahoo deal in the past. Microsoft shares closed up more than 5 percent today, just under $24.

– Todd Bishop toddbishop@gmail.com