Microsoft: Do You Yahoo?
Microsoft Corp. has given Yahoo an ultimatum: move it or answer to your shareholders.
This week, the corporate giant sent a letter to the Yahoo Board of Directors with a deadline for responding to it $40 billion buyout offer. The letter promised that Microsoft would directly approach Yahoo shareholders to force a new Board if Microsoft doesn’t receive a satisfactory response to its offer.
In January, Microsoft offered $44.6 billion, or 62% above Yahoo’s then market value for the buyout. The Yahoo Board of Directors rejected that offer, claiming that it was not a fair value for the company.
The current offer is worth about $41 billion, based on Friday’s closing share prices.
Yahoo is currently outperforming Microsoft in the search market, grabbing more than twice the percentage of U.S. web searches as its competitor. Yahoo has also announced that it expects revenues to rise more than 70% over the next three years.
It’s clear that they’re getting ready for a fight. The is whether the shareholders are on board.
Tags: Microsoft, search engines, YahooRelated Stories
POSTED IN: Acquisitions, Corporate, Technology
1 opinion for Microsoft: Do You Yahoo?
Yahoo Courts AOL; Microsoft Declares War
Apr 10, 2008 at 7:40 am
[…] course, Microsoft (MSFT) hates to lose. After its failed bid for about $31/share, Microsoft is none too happy that Yahoo is looking elsewhere. For Microsoft, […]
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