Yahoo Won’t Accept Their Bid, So Microsoft Will Try the Proxy Fight Approach

SMS Text

Microsoft, it seems, is hell-bent on taking control of Yahoo, and isn’t about to let a little thing like Yahoo rejecting their unsolicited $31 per share bid get them down.  According to a report published Tuesday in The New York Times, Microsoft is about to launch a battle to take control of Yahoo’s board this week.

Microsoft will nominate a slate of directors to Yahoo’s board, in an attempt to pressure Yahoo directors to negotiate with Microsoft.  This method – known as a proxy fight – is actually viewed as a less costly way to buy the company.

Microsoft offered $31 per share, a deal which was initially worth $44.6 billion.  Yahoo is reportedly holding out for $40 per share, and thought that Microsoft’s bid seriously undervalued the company.

Perhaps in a warning to Yahoo, Microsoft Chairman Bill Gates told the AP on Monday that Yahoo’s board “should take a hard look” at their original offer.  According to those in the investment community, in such a proxy battle, insitutional investors would back Microsoft.

Get the latest news from Search Engine Journal!
We value your privacy! See our policy here.
  • http://www.jamesfarrell.eu Ireland Web Design

    Ha, thems fightin woids!

    It’s difficult to picture Bill Gates being that scary. I’m following this story with great interest.