Microsoft gives Yahoo last buyout ultimatum
Microsoft is fed up with two months of waiting, and in the April 5th letter to Yahoo Inc., they resorted to an ultimatum, which states that if the two companies will not begin a negotiation on a definitive agreement within the next three weeks, they will take the case directly to the shareholders and start a proxy contest to elect a slate of director for the Yahoo Board. In the letter sent to Yahoo on Saturday and signed by Steve A. Ballmer, Chief Executive Office at Microsoft, the Redmond-based company said about the wasted time: “During these two months of inactivity the public equity markets and overall economic conditions have weakened considerably. By any fair measure, the large premium we offered in January is even more significant today. We believe that the majority of your shareholders share this assessment…”
Still, Microsoft’s proposal doesn’t seem to appeal to Yahoo: “Our Board’s view of your proposal has not changed. We continue to believe that your proposal is not in the best interests of Yahoo and our stockholders. Furthermore, as a result of the decrease in our own stock price, the value of your proposal today is significantly lower than it was when you made your initial proposal.” The initial offer made by Microsoft on February 1 was $31 a share, adding up to a grand total of approximately $44.6 billion but after a downfall in Microsoft’s shares, it is now worth about $42 billion, still making it, if finalized, the biggest-ever takeover in the high-tech industry. Despite constant rejection from Yahoo however, it is hard to imagine Yahoo would be able to make a deal with somebody else than Microsoft.
Source: Forbes, Vnunet
Comments(26)
Let the MS bashing begin…
I presume that hostile takeover will commence in the few months or even days after yahoo financial meeting in 4 days.
Why in gods name do MS persist in buying Yahoo cant they leave one company alone.
Who cares if micorsoft buys another company its their right. If i were microsoft id do the same why do you guys caqre??? Buy more get more
Good on MS
We are the Borg. You will be assimilated. Your biological and technological distinctiveness will be added to our own. Resistance is futile.
Wasn’t that yesterday?
Yahoo wont sell anything.
I thought it was only the board that didn’t want to sell, and that the shareholders were split, some wanting to sell, others not so…
Well the guy is doing alot for the poor with his money,so who can blame the man really..?
@7 Wasn’t that yesterday?
Yahoo wont sell anything.
Capitalism and the United States Economy doesn’t work like that.
Good call of Microsoft.
@9,
sure because of his wife, so rather rephrase: his wife is doing the donation with his money in his name.
do a search, ‘the guy’ did not donate sh1t before time.
It is a good time to buy shares for sure.
Try to buy as much as you can cuz the the way MS is going with this Yahoo deal, soon you will be making a lot of money out of it…
YAHOO DOWN!!!!!!!!!!!!!!!!
Whats a billion dollars here or there. Big deal if people al over the world are starving or being wasted away in george’s war. Die Bill Gates.
Yahoo! Down. Agreed.
Google up.
XP till Win17.
MS funds windows virus makers.
“I’m afraid she won’t make it. We have many new models to choose from though.”
With 44.6 billion, at last Bill will be able to afford a better looking haircut. I say… GO FOR IT BILL….
I support Bill Gates War on Nerds and George’s War on Sand N*ggers!!!
Wait so because M$ didn’t get what they want they throw their toys out of the cot and want to try to forcefully take over by going to the shareholders? And to think this is dubious is “Microsoft bashing” No it’s more like calling out the same old bullyboy M$ as always. Some corporations never change. Much.
@6
Your comment is freakin hilarious, oops, now they now I`m a trekkie. But seriously, even though MS has got the capacity to do this, they still should be fined for such dirty tactics and the monopoly they continue to build all over the world.
Con talks to his son George.
CON (father): “I want you to marry a girl of my choice.”
GEORGE (son): “I will choose my own bride!!”
CON (father): “But the girl is Bill Gates’ daughter..”
GEORGE (son): “Well, in that case… okay.”
Next CON approaches Bill Gates.
CON (father): “I have a husband for your daughter…. ”
Bill Gates: “But my daughter is too young to marry!!”
CON (father): “But this young man is a vice-president of the World Bank.”
Bill Gates: “Ah! in that case… okay.”
Finally CON goes to see the president of the World Bank.
CON: “I have a young man to be recommended as a vice-president.”
President: “But I already have more vice-presidents than I need!”
CON: “But this young man is Bill Gates’ son-in-law.”
President: ‘Ah, in that case… okay.”
G1zmo… that was about as funny as… bathing in razor blades with someone g-ay with AIDS
KILL YOURSELF YOU WASTE OF FECES
g1zmo, that was funny. Thx
g1zmo thats really amazing i heard this joke a long time ago all the way from saudi were u aaaaaaaat?????
@ 23 i didn’t mention it as a joke. did i laugh? Maybe you should try some porno to clear up your head from the milk
Ahh, the American way; If someone doesn’t want to sell their company to you, go over their head and buy it out from under them. Remember, if you have money, there’s no such word as “no”.