Microsoft - Yahoo Back On Again?

In the statement on Sunday, Microsoft announced it was “considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo.” According to the New York Times, "The timing of Microsoft’s new approach may seem opportunistic. Yahoo has been racing to complete its own partnership with Google and was expected to announce a formal agreement as early as this week. A Yahoo-Google partnership, which is likely to face antitrust scrutiny, could make Yahoo a less desirable partner or takeover candidate for Microsoft." Yahoo is also said to be facing a great deal of pressure from it's shareholders, some of whom are said to be furious that the board didn't work harder to strike a deal to sell the company to Microsoft.

Yahoo! Said To Be Poised For A Response... Not Intimidated By Microsoft Ultimatum

Yahoo! is believed to be ready to shoot back at Steve Ballmer's letter of ultimatum issued on the weekend. The board considers Microsoft's offer to undervalue the company's worth. The offer of $31 per share of Yahoo!, on February 1st, has actually gone down to about $29 a share as Microsoft's shares have fell during the time since and the offer contains a share swap. The New York Times is reporting "Yahoo’s response is expected to reject negotiations and explain why Yahoo’s board believes the current offer price is too low." We'll just have to wait and see who forms the more compelling argument in the shareholders eyes.

Microsoft Offers Yahoo Board An Ultimatum

In a letter today, Microsoft Chief Executive Steve Ballmer has issued a deadline of 3 weeks to the Yahoo Board to strike a deal or else. “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,” Mr. Ballmer wrote. “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.” I think that he means business...

Yahoo! Board To Tell Microsoft They Are Not Interested... At That Price

The Wall Street Journal is reporting that Yahoo!'s Board of Directors will send Microsoft a letter on Monday saying that they are rejecting the 44.6 billion dollar offer to purchase the company. The report says that Yahoo! feels the bid is low and is unlikely to consider anything under 40 dollars a share, which would mean Microsoft would have to pony up another $12 billion. The board is apparently also considering a partnership with Google that would "safe guard" the company's independence. This should really be no surprise to anyone as it is the board's job to get the best value for it's shareholders, and they're probably looking out for their own jobs as well. Can you blame them? Your move Microsoft...