Yahoo Says 'No' to Microsoft's Bid
Reports emerged today that Yahoo's board will be formally rejecting Microsoft's $44.6 billion takeover bid for Yahoo on Monday, according to "a person familiar with the situation",
Formal details will be revealed Monday but one of the claims is that the bid "massively undervalues" Yahoo. Analysts, however, say that the Yahoo board is obligated to reject Microsoft's first offer as a duty to their shareholders to get the best possible price for the company.
Others speculate that Microsoft is prepared to up their bid from $31/share to as high as $35/share as part of the negotiation. This being said, its been no secret that Yahoo's co-founder and CEO, Jerry Yang, is reluctant for his company to join Microsoft.
If this rejection is final, however, Microsoft has the option of taking the matter directly to the shareholders, and bypass the board of directors entirely.
Formal details will be revealed Monday but one of the claims is that the bid "massively undervalues" Yahoo. Analysts, however, say that the Yahoo board is obligated to reject Microsoft's first offer as a duty to their shareholders to get the best possible price for the company.
"You would expect Yahoo's board to reject Microsoft at first," Marlin said. "If they didn't, they would be accused of malfeasance."
Others speculate that Microsoft is prepared to up their bid from $31/share to as high as $35/share as part of the negotiation. This being said, its been no secret that Yahoo's co-founder and CEO, Jerry Yang, is reluctant for his company to join Microsoft.
If this rejection is final, however, Microsoft has the option of taking the matter directly to the shareholders, and bypass the board of directors entirely.
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52 months ago
BBC News 24 just reported that the Yahoo! board has chosen to reject the Microsoft bid, according to "someone familiar with the situation"...!
52 months ago
Interesting, I wonder if they have had another offer or just don't want to be taken over.
52 months ago
Surprising. It was a good offer. I think it's the "don't want to be taken over"
52 months ago
I can't imagine joining both companies would do much good anyway.
As another article pointed out, yahoo is only doing well because of recent acqusitions. I think microsoft should start out with some smaller ones if they want new growth.
As another article pointed out, yahoo is only doing well because of recent acqusitions. I think microsoft should start out with some smaller ones if they want new growth.
52 months ago
They know that Yahoo!, it's brand, and the direction they can develop the company in will be limited to Ballmer's obsession with Google and sales-based mentality that's why. Microsoft wanted Bungie to end up as a Halo franchise development house and nothing more. That says a lot about how they pigeon hole their business units.
52 months ago
I thought it was a proposed 'hostile' takeover? Therefore it doesn't make much difference what the Yahoo! board think about the Microsoft offer.
Or am I wrong?
Or am I wrong?
52 months ago
I thought it was a proposed 'hostile' takeover? Therefore it doesn't make much difference what the Yahoo! board think about the Microsoft offer.
Or am I wrong?
I'd heard hostile takeover, but I have no idea what it means. Presumably the board can have some say...!
A takeover would be considered "hostile" if (1) the board rejects the offer, but the bidder continues to pursue it, or (2) if the bidder makes the offer without informing the board beforehand.
http://en.wikipedia.org/wiki/Takeover#Friendly_and_hostile_takeovers
52 months ago
This is a very redacted and brief version without much detail, but a hostile takeover is where the offer was not solicited by the target, here yahoo. The board has a say because they oversee business decisions such as these. They had a fiduciary obligation to preserve the interests of the corporation's value for its shareholders. The added component is that Microsoft can go offer shareholders a high premium over the price they paid for their shares in an effort to get around the board's decision. Presumably in theory, a shareholder who paid let's say $15 will want to sell when they are offered $45. That pretty much sums it up very very very quickly.
52 months ago
Cheers :)
There's more here: http://www.alleyinsider.com/2008/2/yahoo_to_microsoft___ok__let_s_talk__
It would seem that the BBC's initial report whilst accurate was not the whole story. This article talks about the rejection being more of a hold up, so they can sort of milk MSFT for a little more... and at the same time making sure they can't be accused of screwing over their shareholders (by not taking the deal).
There's more here: http://www.alleyinsider.com/2008/2/yahoo_to_microsoft___ok__let_s_talk__
It would seem that the BBC's initial report whilst accurate was not the whole story. This article talks about the rejection being more of a hold up, so they can sort of milk MSFT for a little more... and at the same time making sure they can't be accused of screwing over their shareholders (by not taking the deal).
52 months ago
I'd heard hostile takeover, but I have no idea what it means. Presumably the board can have some say...!
http://en.wikipedia.org/wiki/Takeover#Friendly_and_hostile_takeovers
Is there such a thing as a "Friendly" takeover?
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