Yahoo morale down, unexcited about AOL talks

San Francisco (CA) - A senior Yahoo worker has said that the current situation within the company is "completely distracting for employees" and creating an uneasy environment.

In an effort to avoid a hostile takeover from Microsoft, Yahoo has reportedly begun talks with AOL, but some executives dislike the idea. "We have enough problems without getting theirs, which are much worse," said one.

Technology business writer Kara Swisher wrote in her blog that she talked with a handful of high-profile sources at Yahoo, all speaking with anonymity.

"It is a very dangerous game of chicken, and Yahoo has never really been good at that," said one executive. In fact, according to Swisher, the only person who wants a potential deal with AOL is the company’s CEO Jerry Yang.

This week it was reported that AOL and Yahoo could potentially create some kind of partnership. The Associated Press called it a "last-ditch effort" to prevent a Microsoft takeover at all costs.

Not willing to sit idly by and still determined to bring Yahoo into its portfolio, Microsoft is also hashing out a potential deal with an online giant, News Corp. The media conglomerate owns a ton of Internet entities under its Fox Interactive Media brand.

"No one here, except Jerry and the board, has any enthusiasm for it," said one Yahoo executive. "Look, Microsoft would not be my first choice either. But AOL is not even my third," said another.

After reportedly having lunch with Yang, one senior Yahoo employee told Swisher, "We are tired of all the noise and the angling and most of us just want something to get done."