All Things Digital

The lack of announcement by Microsoft this morning, as expected, has Silicon Alley Insider speculating that Microsoft (MSFT) and Yahoo (YHOO) are finally engaged in serious, behind-the-scenes discussions about finally coming to the table and making a deal in the long-running takeover battle.

From Henry Blodget’s blog to Steve Ballmer’s brain…

But it’s not a bad theory, especially given the eerie quiet after the spate of very public Hamlet act by the Microsoft CEO yesterday. After telling The Wall Street Journal, “With the right circumstances it’ll happen. Without the right circumstances it won’t happen” today, this is how the New York Post characterized it:

“The frequently shouting, often sweaty Ballmer gave no indication as to the direction he was leaning, saying only that there were three paths the company could pursue: a friendly deal, an unfriendly deal or walking away.”

Well, that clears it up! (Not even one little bit.)

Actually, BoomTown posted earlier this week about informal talks already taking place:

According to sources close to both companies, there are informal discussions now taking place between Yahoo and Microsoft–via bankers, board members, shareholders and others close to both companies–to try to prevent a hostile takeover scenario or the sudden withdrawal of Microsoft’s offer.

So given Ballmer’s range of options this week seem wide enough to drive a semi through, perhaps that’s precisely what Yahoo is finally doing today, as its board meets, sources tell me, to discuss options.

Having successfully gotten the price talk up around the mid-$30s, after it was heading downward only last week and ladling on more Google (GOOG) scariness aimed at Microsoft yesterday–Fabulous online ad outsourcing deal coming! We swear! Google has magic powers to put a spell on you! Boooooo!–the bluffing by Yahoo CEO Jerry Yang would make the famous poker player Jerry Yang proud. (Both pictured here.)

So now, we wait and watch to see who wins this seemingly endless game of Silicon Valley Hold ‘Em.

Many observers think that Jerry Yang needs to be a little bolder and has to really make big bets if he wants to turn Yahoo–which he co-founded–into a company with both momentum and excitement.

He could take a tip perhaps from the other Jerry Yang, a 39-year-old California psychologist with little poker experience, who won the World Series of Poker yesterday, taking in a kitty of $8.25 million in what is the largest annual tournament.

The Hmong immigrant from Laos, who has six children and whose profile is here, beat out almost 6,400 players in the no-limit Texas Hold ‘Em event.

“I study my opponents very carefully, and when I sensed something, when I sensed some weakness, I took a chance,” Yang told the Associated Press. “Even if I had nothing, I decided to raise, re-raise, push all-in or make a call.”

In fact, that’s not a bad strategy for Yahoo going forward.