Microsoft Gives Yahoo 3 Week Ultimatum
Microsoft Gives Yahoo 3 Week Ultimatum
by , 6:15 PM EDT, April 5th, 2008
Microsoft CEO Steve Ballmer presented the Yahoo Board of Directors a letter on Saturday that in no uncertain terms gives the Internet search company three weeks to agree to a buyout or face a more hostile take over attempt. The ultimatum states that Microsoft is ready side step Yahoo's Board and present an offer directly to the company's shareholders.
"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's letter said. "The substantial premium reflected in our initial proposal anticipated a friendly transaction with you. 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."
Mr. Ballmer added that even though Microsoft considers Yahoo to be worth far less than it was when the original buyout offer was presented at the beginning of February, his company is not lowering its offer. He did, however, make it clear that if Microsoft goes directly to Yahoo's shareholders, the offer will be changed to more closely reflect the company's current value.
"During these two months of inactivity, the Internet has continued to march on, while the public equity markets and overall economic conditions have weakened considerably," he said. "By any fair measure, the large premium we offered in January is even more significant today. We believe that the majority of your shareholders share this assessment, even after reviewing your public disclosures relating to your future prospects."
Microsoft presented Yahoo with an unsolicited buyout offer of US$44.6 billion on February 1 following the company's reported 23 percent drop in earnings. Yahoo rejected Microsoft's offer, and then began talking with Time Warner about a possible AOL deal to block Microsoft from attempting a hostile takeover.
Mr. Ballmer drove his point home on Saturday by stating "It is unfortunate that by choosing not to enter into substantive negotiations with us, you have failed to give due consideration to a transaction that has tremendous benefits for Yahoo's shareholders and employees. We think it is critically important not to let this window of opportunity pass."
Observer Comments
Sat Apr 05, 2008 7:26 pm Subject: The Sound of Music
Sat Apr 05, 2008 9:38 pm Subject: Value to Yahoo's employees!
Sun Apr 06, 2008 8:03 am Subject: Dear Yahoo shareholders...
Sun Apr 06, 2008 12:56 pm Subject: Re: Dear Yahoo shareholders...
Sun Apr 06, 2008 1:39 pm Subject: Suggestion to Yahoo's CEO - Challenge msft with walkout
Yahoo could pull a publicity coup and become an instant Public hero by threatening an entire work force resignation if Microsoft takes over. That would mean Microsoft buys nothing but a name. Without Yahoos working the company Microsoft will never be able to achieve their objectives. If Yahoos have balls, they will prevail and become heros for their determination - if not they will become balls to a big .....
Good Luck Yahoo - We the public will support you!
Quotebreeze wrote:
Yahoo could pull a publicity coup and become an instant Public hero by threatening an entire work force resignation if Microsoft takes over. That would mean Microsoft buys nothing but a name. Without Yahoos working the company Microsoft will never be able to achieve their objectives. If Yahoos have balls, they will prevail and become heros for their determination - if not they will become balls to a big .....
Good Luck Yahoo - We the public will support you!
I would love to see that!
Ballmer is such a frakking idiot that he thinks that buying Yahoo is going to make Monoposoft an instant competitor in the online search market. They'll do nothing but lose money and created rage and hatred against them... The only winner that will emerge from this is Google. I agree with the earlier comment to shareholders... if you own Yahoo! dump it and pick up Google while you still can get anything for Yahoo.
Sun Apr 06, 2008 7:21 pm Subject: this is funny, I'll have to sell my MS shares quick
this reminds me of when roxio (or whoever) bought Napster. There was nothing that the cultures of the companies had in common, and, sure enough,it did not work (which was way predictable).
MS and Yahoo, while different beasts, will not mesh well, and both companies will suffer, and thier competition thrieve (yeah Apple and Google)...
Quotebreeze wrote:
Yahoo could pull a publicity coup and become an instant Public hero by threatening an entire work force resignation if Microsoft takes over. That would mean Microsoft buys nothing but a name. Without Yahoos working the company Microsoft will never be able to achieve their objectives. If Yahoos have balls, they will prevail and become heros for their determination - if not they will become balls to a big .....
Good Luck Yahoo - We the public will support you!
you've got it wrong.. microsoft doesn't give a crap about yahoo's products and services.. all they want to do is take down a competitor. if all they are left with is a name, that will be fine by microsoft.
Quoteburrito wrote:Quotebreeze wrote:
Yahoo could pull a publicity coup and become an instant Public hero by threatening an entire work force resignation if Microsoft takes over. That would mean Microsoft buys nothing but a name. Without Yahoos working the company Microsoft will never be able to achieve their objectives. If Yahoos have balls, they will prevail and become heros for their determination - if not they will become balls to a big .....
Good Luck Yahoo - We the public will support you!
you've got it wrong.. microsoft doesn't give a crap about yahoo's products and services.. all they want to do is take down a competitor. if all they are left with is a name, that will be fine by microsoft.
I don't think so. I think sweaty Steve really does think that buying Yahoo will help them put a dent in Google's search and advertising market share.
If their intent was to just take someone out, why not just directly target Google, and not even announce it? Why not just go through third party brokerage houses and start buying up Google stock as fast as they can?
No, this move is meant to intimidate Yahoo! to try and get them to accept the deal by circumventing them; they're offering the same money per share as their first offer, it's just that now they're making that offer to shareholders directly. MS knows their attack is causing Yahoo's stock to tank, and that the only way people will get back what they paid for it is to sell their shares directly to Monoposoft.
Sweaty Steve couldn't be more earnest on this one; his true colors are showing... intimidation, bribery, and threats. Mainstays of the Monoposoft business model for decades.
QuoteGuest wrote:
If their intent was to just take someone out, why not just directly target Google, and not even announce it? Why not just go through third party brokerage houses and start buying up Google stock as fast as they can?
I doubt that they could legally do that. As I understand it, once they own a certain percentage of the stock, they would have to publicly announce their intention.
Comments are currently closed. Please email the author instead.
Recent Headlines - Updated July 6th
- Mon, 11:17 AM
- Ted Landau's User Friendly View - Apple’s LED Cinema Display: A Too Short Story
- 11:11 AM
- Product News - Photo Recovery for Mac Adds Photoshop Support
- 10:39 AM
- Hot Forum Topic - iPhones in Education
- 8:47 AM
- News - Apple Employee Injured in Store Shooting
- Fri, 10:29 AM
- News - Apple Warns of Learning Interchange Security Breach
- 7:30 AM
- News - Happy Fourth of July!
- Thu, 6:07 PM
- TMO Scoop - Psystar Moves to Drop Bankruptcy Ahead of Apple Legal Battle
- 5:37 PM
- News - Uncomfirmed Reports Say Apple & Nvidia On The Outs
- 4:57 PM
- News - Microsoft Sick Over Barf Ad
- 4:09 PM
- Product News - KRK Ships R6 Passive Studio Monitor for Recording
- 3:45 PM
- John Martellaro's Blog - Particle Debris (week ending 7/2) Juiced, Joost and Goosed
- 3:12 PM
- Product News - ExactScan 2 Pro Released
The Mac Observer Reader Specials
- Download Typestyler, still the Ultimate Styling Tool for Internet, Print and Video Graphics. Works great in Classic with a Native OS X Version on the way. Free Tryout: www.typestyler.com
OWC: Big Drives, High Performance - Not High Prices! SATA 3.5" up to 1.5TB. Notebook up to 500GB. FW up to 6.0TB. 1.0TB Drive Models from as low as $97.99 www.MacSales.com
If you're using a Mac, then you've gotta check out Full Tilt Poker for Mac. This Full Tilt Poker bonus code does the unthinkable, it actually rewards!
RamJet Memory: MacBook and MacBook Pro 4GB kits for $57.99! Mac Pro 4GB Kits $99.99! iMac and Mac mini 4GB Kits for $57.99! 1TB SATA Hard Drives for $109.99! Click hereFor the latest Apple products use Ciao, a price comparison website, to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate mobile phones like the Apple iPhone.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.

