Microsoft Dissolves Yahoo Proxy Board
by , 8:05 AM EDT, May 9th, 2008
Microsoft reaffirmed the claim that it won't launch a hostile takeover attempt on Yahoo with the release of the proxy board members it had assembled. The potentail board members received the word Thursday via email from Microsoft's law firm, according to the Wall Street Journal.
The Redmond-based company had culled a list of potential proxy board members in preparation for a hostile takeover move if it could not reach a buyout agreement with the Internet search and advertising company Yahoo. When the two companies failed to reach an agreement, Microsoft chose to walk away from the table instead of pursuing a hostile takeover attempt.
Microsoft presented Yahoo with an unsolicited US$44.6 billion buyout offer in February in hopes of better positioning itself to take on Google in the Internet search-based advertising market. Yahoo rejected the offer after claiming that it was undervalued.
The two companies engaged in on again/off again talks that eventually fell apart in early May. Microsoft CEO commented "After careful consideration, we believe the economics demanded by Yahoo do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal."