Saturday, April 05, 2008

The Other Shoe Just Fell For Yahoo

Reuters just reported that Microsoft has given Yahoo three weeks to accept the Microsoft offer of $31 per share in cash and stock. Otherwise, Microsoft plans "to mount a proxy battle to win investor support for the takeover . . ."

Microsoft Chief Executive Steve Ballmer said in a letter dated April 5 and addressed to Yahoo's board of directors that "now is the time" to negotiate final terms of a deal, one which would mark the biggest takeover yet in the high-tech industry.

In addition to taking Microsoft's case directly to the Yahoo stockholders, Ballmer threatened to initiate "a proxy contest to elect an alternative slate of directors."

This move does not come as a surprise. Go here to read my last post on the subject.


Allan Young said...

Ballmer waging a proxy battle will be great fun to watch. I can't wait. Seriously, as much as we'd like to see Yahoo! stay indepedent, the offer from Microsoft is too big to reject.

Maya Reynolds said...

Allan: Thanks for stopping by.

I'm not sure it's going to be a very exciting proxy battle. Jerry Yang has alienated his stockholders and, as you say, the offer is too attractive to reject.

Yang has tried to seed the ground with a minefield of poison pills, but I suspect Microsoft is going to make short work of Yang and Company.