Yahoo is Now Interested in Microsoft Deal After Getting Rejected

Logo Microsoft and YahooYahoo seemingly made its position absolutely clear -- it felt Microsoft's offer of $31 a share, a 62 percent premium on current prices at the time of the offer, was unfair and undervalued the company. It argued that anything less than $37 a share, or roughly a 91 percent premium on the price at the time, would be unsatisfactory.

In the end Microsoft dropped its offer, citing that Yahoo's expectations were unrealistic, while Yahoo tried desperately to reassure employees and shareholders that it had a plan to weather the tough times ahead.

However, it didn't take long for Yahoo to apparently start hoping that Microsoft would consider pursuing it again. In a move like something out of a television drama, the company announced only 48 hours after Microsoft dropped its bid that it would be willing to negotiate for a sub $37 price and that it would be happy to reopen talks with Microsoft.

Chairman Roy Bostock indicated that Yahoo's stubbornness on the $37 dollar price was basically an effort to get a bit more money out of Microsoft and it really didn't hope to get that much. He told the Wall Street Journal, "Listening to shareholders is very important but you'll get lots of points of view...we think a fair value for the company is $37. It was not a take-it-or-leave it statement."

Yahoo is getting blasted by its largest shareholder, Capital Research Global Investors, one of the most respected investment institutions on Wall Street. Gordon Crawford, a portfolio manager with the firm remarked in the WSJ article, "I'm extremely disappointed in Jerry Yang, I think he overplayed a weak hand. And I'm even more disappointed in the independent directors who were not responsive to the needs of independent shareholders."

In a separate New York Times article, Crawford continues to voice his disapproval stating, "I am extremely angry at Jerry Yang and at the so-called independent board."

In regards to Bostock's claims of shareholder support he challenges, "I would love to know who these shareholders are. It??™s none of the ones that I talked to today. Everybody I talked to would have sold their stock at $34."

He continues, "I??™m hoping that there is such an outpouring of outrage that the board is embarrassed into revisiting this thing, but I??™m not optimistic about that."

Henry Blodget with the Silicon Valley Insider writes on the Yahoo's hardball stance and its recent reversal, "In other words, it was just a gambit--which Roy, Jerry et al, expected Steve would quickly counter with a bid of, say, $34-$35 because he was so desperate to buy Yahoo. Oops." Now it appears that the price has dropped to $34, but it remains to be seen if Microsoft shows any interest in the company after it made up its mind to reject it. Microsoft has said it will remain open to offers, but at this point it has to wonder -- if Yahoo only took this long to drop the asking price $3, how much longer will it really take for Yahoo to drop $3 more to the original asking price? The only thing that seems sure at this point is that there's sure to be more drama between the pair.

Source: DailyTech

Tags: Microsoft, Yahoo

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Pokemon GO had the potential to net $1 billion a year
The report said that Hon Hai has invested about US$600 million in India
Market research firm IDC reports that in the third quarter of this year
Customers will only have to shell out 50% of the cost of their Galaxy S7 device
New flagship will launch in 2017
Patent hints at name of the upcoming Surface AIO
IBM, Globalfoundries and Samsung have chosen to use extreme ultraviolet (EUV) light to pattern transistors
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
HP Slate 7 is a 7-inch Android 4 Tablet PC with good sound
A cost-effective, 7-inch tablet PC from a renowned manufacturer
October 25, 2013 / 4

News Archive



Do you use microSD card with your phone?
or leave your own version in comments