Yahoo Board to Reject Microsoft Bid
Posted by gasusan2005 on 02/9/08 in Microsoft
Well it looks as if Yahoo’s Board will be rejecting the bid from Microsoft Soon. According to Tech Consumer they will send out a letter to Microsoft with these reasons to reject the offer…
- Yahoo thinks Microsoft is trying to take advantage of Yahoo’s weak stock price and is saying that Microsoft wants to “steal” the company.
- Yahoo board member won’t consider offers below $40 a share, an extra $12 billion (quite the premium, considering the first offer was a 62% premium over Yahoo’s market value).
- Yahoo is effectively stalling while it considers an alternative of partnering with Google (ironically, a point that nullifies the original point of Microsoft’s offer not taking into consideration “risks” of regulation, considering the risks of regulation are higher with Google).
- Yahoo is hoping that Microsoft will not follow through with a hostile take over (even if Steve Ballmer said as much in his original letter). The reasoning here is that important engineers would not be willing to cooperate in a hostile take over, and regulators may be more easily convinced that this deal is anticompetitive if hostile.
Source: Tech Consumer
Written by gasusan2005 · Filed Under Microsoft
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Big mistake. They could start another yahoo with that money, I don’t think they will ever make more than this bid even if they continue as it is.
I’m inclined to agree with hyedipin. Personally I haven’t had much contact with Yahoo (Ya-Who?) in recent years. When I look to do a search I use Live Search or Google. I do use Google’s “widgets” but that’s about it.
Maybe I’m not typical - but perhaps a team-up with Microsoft would give them more visibility which they seem to be losing.
-CB :D