February 9, 2008
Yahoo Dares to Say No to the Great Microsoft
It looks like Sunnyvale-based Yahoo plans on rejecting the $44.6 billion rose Microsoft offered it earlier this month. A move that would have merged the two tech giants won't happen, it seems, and we were so sure this relationship would've worked out swimmingly. Sniff.
But all is not lost. According the Gate:
Yahoo's board, which met Friday, has determined that the $31 per share offer Microsoft made is inadequate. The Wall Street Journal reported in its online edition today that the board is holding out for at least $40 per share, which would increase the overall value of the proposal by $12 billion.
Oh Yahoo, you whore.
Image credit: thomashawk.com
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Yahoo's board has to consider all offers and has to think of it's shareholder's interests, it's the law. Therefore they can't reject such an offer out of hand as it would probably be against their fiduciary duty to their shareholder's financial interests. Some Yahoo shareholder's haven't seen a lot of money come their way from their shares. And Yahoo has troubles and needs serious updating.
Of course, the game here is to set a price which is just beyond Microsoft's ability to do the deal.
Yahoo's board has to consider all offers and has to think of it's shareholder's interests, it's the law. Therefore they can't reject such an offer out of hand as it would probably be against their fiduciary duty to their shareholder's financial interests. Some Yahoo shareholder's haven't seen a lot of money come their way from their shares. And Yahoo has troubles and needs serious updating.
Of course, the game here is to set a price which is just beyond Microsoft's ability to do the deal.