In the wake of the collapse of Microsoft's efforts to acquire Yahoo on account of Yahoo's demanding up to $37 per share, Yahoo's largest shareholder has expressed outrage at Yahoo's management. Reuters reported, "Legendary media money manager Gordon Crawford blasted Yahoo Chief Jerry Yang for blowing the Microsoft deal... 'I am extremely angry at Jerry Yang and at the so-called independent board,' Crawford told the Times. 'I’m hoping that there is such an outpouring of outrage that the board is embarrassed into revisiting this thing … but I’m not optimistic about that.'"

Today, Yahoo's stock has been trading higher. Whether or not that trend has something to do with expectations that the reactions of Yahoo's shareholders might lead to Microsoft's re-entering the bidding process for Yahoo remains to be seen. In my opinion, there remains just such a possibility at some point in time, though such an outcome is not assured.

The discontent of Yahoo's shareholders has provided Microsoft with a stronger bargaining position and an increased prospect of receiving a favorable response from Yahoo's management. Hence, it may well be able to extract a more favorable price from Yahoo's management, perhaps something closer to its initial offer of $31 per share than its $33 per share closing offer, should discussions resume.