And so as expected, Yahoo issued an announcement rejecting Microsoft’s undervalued bid and even contemplated on renewing merger talks with AOL. Pundits are saying that it was Yahoo’s way of getting out of Microsoft’s acquisition intent, but I would like to think it was its way of slowly getting into Google’s lair.
How did Microsoft took Yahoo’s rejection? As unexpected from a giant web company such as Microsoft, it wouldn’t just take it that easily. In the statement issued by Microsoft, the company feels unfortunate that Yahoo’s stakeholders rejected their intent to combine their forces, which according to the Microsoft statement:
will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising
Funny, how Microsoft continue to insist that such merger would provide greater value and service to customers where in fact it is very clear that the motive behind this corporate courting issues is just about dislodging Google from its online advertising and search engine dominance.
And so, standing firm on its desire to acquire Yahoo, Microsoft said:
The Yahoo! response does not change our belief in the strategic and
financial merits of our proposal. As we have said previously, Microsoft
reserves the right to pursue all necessary steps to ensure that Yahoo!’s
shareholders are provided with the opportunity to realize the value
inherent in our proposal.
We could only hope that “those necessary steps” would not mean some heads “getting chopped off” from the Yahoo Board, whether through voluntary or otherwise forced actions.