Much like ‘the girl that’s hard to get’,(funny family guy song) Yahoo is Microsoft’s shipoopi. Both MSN and Yahoo have been playing a distant second and third fiddle to Google who keeps grabbing marketshare a .25 to .5 percent/quarter while MSN and Yahoo fight over an ever shrinking piece of the pie.
” Yahoohas rejected a three-week deadline from Microsoft to accept a 44.6 billion dollar takeover, as the battle between the two technology titans heated up.
Yahoo however said on Monday it was open to a sweetened bid from the software giant or another bidder.
“We continue to believe that your proposal is not in the best interests of Yahoo and our stockholders,” Yahoo’s board chairman Roy Bostock and chief executive Jerry Yang said in a letter to CEO of Microsoft CorporationSteve Ballmer.
“We are open to all alternatives that maximize stockholder value. To be clear, this includes a transaction with Microsoft if it represents a price that fully recognizes the value of Yahoo on a standalone basis,” the Yahoo letter said.
The letter came in response to an ultimatum issued by Microsoft on Saturday for the Internet giant to accept its 44.6 billion dollar takeover offer in three weeks or face a shareholder proxy fight.”
Together they may not be able to reverse their fortunes, but seperately it is almost a certainty they cannot.
“Yahoo! extended a deadline to nominate board directors, buying the company time to pursue alternatives to Microsoft Corp’s $41.7 billion offer, while also giving Yahoo room to negotiate a friendly deal with Microsoft.
The original March 14 deadline could have catapulted Microsoft and Yahoo into a formal proxy contest next week. Instead, Yahoo said on Wednesday the deadline would fall 10 days after it announces the date for its annual shareholder meeting, which has yet to be scheduled.
Yahoo has explored tie-ups with several other Internet and media companies that would allow it to retain more independence. Delaying board nominations reduces the pressure on Microsoft to turn hostile in its takeover strategy in which it could nominate an alternative slate of Yahoo directors.
Talks about a deal with Time Warner Inc’s (TWX.N) AOL unit have accelerated, a person briefed on the discussions said on Wednesday. News Corp (NWSa.N) and Yahoo are still discussing possible options, a source familiar with the talks said.”
By Jeff Buechler— As my sources had shared with me and as I had written about a month ago, Microsoft has made an offer to buy Yahoo for about $44.6 billion, or $31 a share, in a mix of cash and stock. The offer represents a 62 percent premium over Yahoo’s closing stock price of $19.18 on Thursday.
Steve Ballmer, Microsoft’s CEO said in a statement, “We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.”
Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today said that it has received an unsolicited proposal from Microsoft to acquire the Company. The Company said that its Board of Directors will evaluate this proposal carefully and promptly in the context of Yahoo!’s strategic plans and pursue the best course of action to maximize long-term value for shareholders.
Technically it may have been unsolicited but there were plenty of ‘what if’ discussions prior to this offer. Whether efficiencies in the two companies can be achieved is primarily going to be based on the execution. Time will tell how the two very different strengths of each company can be leveraged to produce a sum greater than its parts.