SEO

Microsoft Sets a deadline for Yahoo to accept $41 billion buyout or else

For Microsoft, the waiting game may soon be offer as it finally gave a deadline for Yahoo to accept its $41 billion offer. Microsoft warned that if Yahoo does not accept the offer by April 26, Microsoft will resort to hostile takeover at even a lower price than $41 billion.

In a letter addressed to the Yahoo board last Saturday, Microsoft‘s Steve Balmer wrote:

“If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo board.”

Citing Yahoo’s declining search share and page views, Balmer also said that:

“If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal.”

Balmer also believed that majority of Yahoo’s shareholders share the same assessment as Microsoft with regards to the declining value of Yahoo, and that its proposal is the only option for Yahoo to give its shareholder full and fair value for their share. Balmer even acknowledged Yahoo’s efforts to find alternatives that would counter Microsoft’s bid but to no avail.

As Yahoo buys some more time before the annual shareholders meeting is held, Microsoft in the meantime is reported to have hired a solicitation firm that would prepare the hostile takeover. As to when the hostile takeover will happen after the deadline, only Microsoft knows. Knowing the turn of events that has been happening, this might happen sooner than we can think.

579eb45f0fb1810cdbe2fdf8fb3acd7b 64 Microsoft Sets a deadline for Yahoo to accept $41 billion buyout or else
Arnold Zafra writes daily on the announcements by Google, Ask.com, Yahoo & MSN along with how these announcements effect web publishers. He is currently building three niche blogs covering iPad News, Google Android Phones and E-Book Readers.
579eb45f0fb1810cdbe2fdf8fb3acd7b 64 Microsoft Sets a deadline for Yahoo to accept $41 billion buyout or else
579eb45f0fb1810cdbe2fdf8fb3acd7b 64 Microsoft Sets a deadline for Yahoo to accept $41 billion buyout or else

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5 thoughts on “Microsoft Sets a deadline for Yahoo to accept $41 billion buyout or else

  1. Harball! I’m loving this as it’s not often you get to see a heavyweight push this hard with so much at stake.
    I think Jerry Yang is clinging to a lost past with Yahoo! I respect that but the days of old are done and he needs to let the evolution of his baby resolve.

  2. If the value of Yahoo! is declining, why is Steve Balmer and co still very much interested in it. I see a complete lack of democracy in all this issue. Why is MS pinning Yahoo! to the wall like this? Why is MS not using their $$$$$ in their own Research and Development to achieve a better search mechanism

  3. Microsoft have seriously loss the plot ever since the day they decided to concerate on server and desktop back in 90’s they been playing catch-up on the internet , what they need to do is go back to basic forget they monies and concentrate on market share, too many hangers on at microsoft no real sales or marketing that why need to buy. like other I think it totals waste spending all that monies on yahoo when going to take 6-8 months before Microsoft will get any real benefit

  4. What a stupid idea, completely agree with you guys. They failed in everything so far- Office 2007, Xbox, AdCenter. Why just not to sack 50% of their staff and make those who left to work. I bet they won’t need Yahoo. If they ruined one search engine it doesn’t mean they should do it again.