Just when you thought this buyout deal between Yahoo and Microsoft was over, here comes some small group of Yahoo investors making some noise again. According to Reuters, Mithras Capital which own more than 1.9 million shares, or equivalent to 0.14% of Yahoo, is submitting a proposal to Microsoft that would allow them to buy Yahoo’s Search business for a price that is $2 billion less than it originally offered sometime in July.
If the proposal would materialize, that is approved by the majority of Yahoo’s investors and accepted by Microsoft, it would practically sell Yahoo stocks at $22 per share, giving a 74% percent premium on Yahoo’s current stock price, which incidentally has been plummeting downwards the past couple of days.
The said proposal also calls for Microsoft unloading Yahoo’s Asian assets and non-search businesses, extracting $3 billion worth of cost savings and receiving $2.8 billion of tax benefits. This would amount to Microsoft paying $10.3 billion for Yahoo’s search business alone.
Like we said, Yahoo’s stocks have been falling the past couple of days, and if this proposal gets passed through other Yahoo investors and the Yahoo Board, Microsoft might accept the offer despite issuing a statement before that it is no longer interested with Yahoo’s search business anymore. But with a price like that, Microsoft just might consider going back to the negotiating table again.
The question now is whether the proposal would push through.