Too Much Trouble?
Ultimately, it seems that Microsoft's management, fatigued by Yahoo's resistance and demands, decided that engaging in a proxy fight to oust Yahoo's directors would be an arduous and nasty process. After all, for Microsoft, the goal of the massive acquisition was to quickly become a mightier competitor to Google in online advertising.
"This approach would necessarily involve a protracted proxy contest and eventually an exchange offer. Our discussions with you have led us to conclude that, in the interim, you would take steps that would make Yahoo undesirable as an acquisition for Microsoft," Ballmer wrote in a letter he sent Saturday to Yang.
As soon as Microsoft announced its bid for Yahoo on Feb. 1 -- valued at US$44.6 billion at the time -- Yahoo's management began seeking and considering alternatives, while its stock began to rise from the latest pre-bid price of $19.18.
By the time Yahoo's board formally rejected the unsolicited offer on Feb. 11, saying it undervalued the company, Yahoo's stock price had risen to $29.87, erasing the offer's premium. The next day, Microsoft hinted in a letter to Yahoo that it wouldn't shy away from attempting a hostile takeover.
Meanwhile, several media reports appeared -- all attributed to anonymous sources -- that Yang was holding conversations with Google, AOL, Disney and News Corp., exploring alternative deals that would strengthen Yahoo's business and thus relieve the pressure to accept Microsoft's offer.
On April 5, Microsoft, clearly impatient, threatened Yahoo's board of directors with a proxy battle if it wouldn't agree to a buy-out in the next three weeks. That deadline passed last Saturday.
- Sponsored Resource:Are you ready for virtualization? Try the sever assessment tool.
- Sponsored Resource:Stay at home servers. Learn more about a home server for your family.
- Sponsored Resource:Get the communications, data, and security a business needs in one neat package. Learn more.
- Sponsored Resource:Learn more about ultra light notebooks from Asus and the best warranty in the industry.
- Sponsored Resource:Thinking about a new Laptop? Lenovo has models to meet everyone's needs.
- Sponsored Resource:Get the truth about remanufactured ink. Learn more from HP.
- Sponsored Resource:Six smart ways to grow small business IT
News For Your Business
- AT&T Objects to Sprint-Clearwire Deal
- FCC OKs Sirius Acquisition of XM
- Broadband Innovations, Part 4: The Doctor Isn't In but Can Still See You
- Google Counts More Than 1 Trillion Unique Web URLs
- AOL to Shut Down Xdrive, Other Services







Community Comments