Three weeks for Yahoo to accept its $41 billion buyout offer or else face the music of a hostile takeover at a less attractive price – that’s the deadline given by Microsoft in its letter sent on 5th Apr 2008. The hostile takeover mentioned was referring to the proxy fight including nomination of a new slate of directors likely to approve the deal. Apparently Microsoft is getting impatient over Yahoo’s refusal to start the negotiations.
Chief Executive Steve Ballmer warned that should Microsoft Corporation (Nasdaq: MSFT, stock) forced to take an offer directly to Yahoo’s shareholders, that action will have an undesirable impact on the value of Yahoo. Ballmer further said Yahoo’s search share and page views appear to have fallen since the offer was made at the end of January. The letter while re-emphasize that the initial offer at a 62% premium was more than fair it also set the clock ticking which hopefully will get both parties to start talking.
In what seems to be the only solution for Yahoo Inc. (Nasdaq: YHOO, stock), Microsoft is adamant of not raising its’ own offer. Time is not on Yahoo’s side and it’s more than obvious that Yahoo co-founder and CEO Jerry Yang is check-mate. In fact nobody should feel sad about Yahoo being swollen by Microsoft and if you wish to put the blame on someone, that person has to be Jerry Yang. It’s not that Yahoo didn’t see where Google is going and Microsoft is coming in the internet advertising business.
So, blame it on Yahoo’s top management for being too slow, not to mention too complacent, in strategizing ways to improve itself from the competitor (Google Inc.). Yahoo’s management was so irritating that its’ own strong supporters were calling “Sell” on its stock long before Microsoft launched the hostile takeover.
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April 6th, 2008 by financetwitter
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