Microsoft Gives Yahoo 3-Week Deadline To Accept Offer
April 6, 2008
Boston (dbTechno) - Steve Ballmer of Microsoft sent a letter to Yahoo on April 5, setting a deadline for Yahoo to decide whether or not they will accept the bid from Microsoft.
The offer from Microsoft to Yahoo is currently at $42 billion, a 62% premium over the Yahoo share price.
Ballmer stated that if no agreement is reached within the next three weeks, Microsoft will move forward and directly contact shareholders.
They may also have to move in a more hostile manner, electing another board for Yahoo.
It is clear that Microsoft may become hostile and lower their offer is no deal is reached.
Microsoft Chief Executive Steve Ballmer wrote in the letter “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.”
Yahoo’s board is apparently reviewing the letter.
Microsoft also killed off thoughts that they may raise the bid.
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I personally don’t think that Yahoo! is actually worth that much, but I would still like to see MS pay more for it. And who does Steve Ballmer think he is trying to threaten a billion dollar company that he’s meant to be negotiating with. He to me appears like a irresponsible idiot, how’d he get to be the CEO!?
Microsoft is definitely overpaying for Yahoo if they do accept. I mean MSN/Live is a pretty horrible search engine as it is, and yahoo isn’t much better. I don’t mean horrible in terms that they don’t return relevant results, it’s more or less that they don’t have the user base that Google has managed to capture. I rank very well in Yahoo for my website, but it hardly generates any traffic compared to Google. So in the end, I think that Microsoft will just be ending up with a great liability on their hand rather than a true asset. Then again that is just my opinion.
And seriously that pic of Steve Ballmer is priceless… he looks so freaky!