Home > ResourceBlog > Article

« All ResourceBlog Articles

 

Bookmark and Share   Feed

Saturday, 9th February 2008

BooHoo for MSFT: Yahoo Will Reject Microsoft's Takeover Offer

Less than a week after Microsoft announced a 44.6 billion offer for Yahoo, The Wall Street Journal is reporting that the offer will be rejected by Yahoo's Board of Directors.

Why?

According to the WSJ, the Yahoo board which has met several times during the past week, believes that the bid undervalues what Yahoo has to offer. In other words, they (Yahoo) wants more $$$. The WSJ also reports that MSFT's first bid doesn't take into account other "risks" Yahoo would have to take by agreeing to the offer.

We will know more on Monday when the Yahoo Board sends a letter to Microsoft explaining their reasons.

So what happens next? Many possibilities. Here are just a few.

1) Microsoft offers more money. The first offer was at $31/share. According to today's WSJ article, Yahoo wants at least $40/share.

2) Another company comes along and makes an offer for at least $40/share. This has always been a possibility even before last Sunday.

3) Although Yahoo has taken "poison pill" precautions, Microsoft could begin a proxy fight to take control of the Yahoo board in a true "hostile" scenario.
From the WSJ:

Yahoo's board appears to be betting that Microsoft doesn't want to "go hostile" and try to acquire the company against the wishes of management and the board. Such a course could cause deep resentment among the rank-and-file engineers whose cooperation is crucial to the company's success.

4) Yahoo remains independent but does some form of an ad partnership deal with Google. Also, potentially outsourcing search to Google or another player. This would also likely mean the elimination of one large crawled web database (Google/Yahoo/Ask/Live.com/Exalead/Gigablast) for searchers. This is also likely the case if Microsoft and Yahoo do come together.

5) ???

UPDATE: Monday press release/rejection letter from Yahoo

See Also: paidcontent.org and Techmeme.

See Also: Who Are the Members of the Yahoo Board of Directors?
Note: Since this document was filed, Terry Semel has resigned from the board (2/1/08).
Note: In July, 2007, Mary Agnes Wilderotter was appointed to the Yahoo Board of Directors.

Gary is Director of Online Info Resources at Ask.com.


Category:

Views: 1445




« All ResourceBlog Articles

 

FreePint

FreePint supports the value of information in the enterprise. Read more »


FeedLatest FreePint Content:


  • Click to view the article Shifting Perceptions of What's "Acceptable" in Compliance
    Monday, 28th July 2014

    Andrew Lucas reports from the recent annual Thomson Reuters Compliance & Risk Summit where Tracey McDermott of the UK Financial Conduct Authority spoke on how the regulator's approach to policing the market is changing and the impact this will have on firms and their senior managers.

  • Click to view the article Information Support in the Product Lifecycle
    Friday, 25th July 2014

    Product Lifecycle Management (PLM) is a strategy which integrates people, processes and business systems into the workflow. It allows disparate communications systems access to product knowledge and to integrate the results of related research; contributing the enabling technology for information to serve as a central hub for collaborative design and development. Author Michael Smith also considers organisational barriers to collaboration, and how these can affect the timeliness and relevance of design decisions and their effect on deliverables and cost models.

  • Click to view the article Changing Compliance Culture in the Financial Sector
    Thursday, 24th July 2014

    In a speech at the annual Thomson Reuters Compliance & Risk Summit Tracey McDermott of the UK Financial Conduct Authority spoke about the change in focus of the regulator towards corporate culture and the enforcement of personal liability by management. The shift from rules-based regulation to the harder to measure compliance culture may require information managers to review the compliance information in their organisation and who receives it.

  • ... more ...

All FreePint Content »
FreePint Topics »


A FreePint Subscription delivers articles and reports that support your organisation's information practice, content and strategy.

Find out more and order a FreePint Subscription by visiting the
completing our online form: Subscription Order page.


FreePint Testimonials

"FreePint is timely and responsive to topical issues. The service offers a really good catch-all for news and pointers on sources that you would ..."

Read more testimonials and supply yours »






 

 
 
 

Register

Register to receive the free ResourceShelf Newsletter, featuring highlighted posts.

Find out more »

Article Categories

All Article Categories »

Archive

All Archives »