Hard stance on Microsoft
THE BATTLE FOR CONTROL of Yahoo! has been ratcheted up a notch as Microsoft put the screws on the search giant in its acquisition battle. Microsoft initiated its takeover for Yahoo! more than two months ago and has been rebuffed consistently since by the online giant, with Yahoo! claiming Microsoft’s US$31/share offer was too low.
Earlier this month Microsoft CEO Steve Ballmer sent a letter to the Yahoo! board urging it to reconsider its bid. Ballmer wrote: “It’s unfortunate that by choosing not to enter into substantive negotiations with us you have failed to give due consideration to a transaction that has tremendous benefits for Yahoo!’s shareholders and employees. We think it’s critically important not to let this window of opportunity pass.”
Last week the Yahoo! board replied to Ballmer’s letter, accusing him of mischaracterising the discussions between the companies and continuing to undervalue Yahoo!
Microsoft appears to be setting the stage for a more hostile bid for Yahoo! and stated it’s not prepared to budge from its current offer. It initially appeared that Yahoo! was on the lookout for potential suitors to save it from Microsoft but as none have emerged, it’s girded itself for a protracted battle.
Should a more hostile approach fail, Microsoft will have no option other than to raise its offer, as it needs Yahoo! to bolster its online offerings and provide a viable alternative to search and advertising giant Google.
The next key date is three weeks from 5 April, when Ballmer’s letter has threatened to take the offer directly to Yahoo!’s shareholders.
Finweek
Loading ...