Over the weekend, Microsoft officially withdrew their unsolicited bid to acquired Yahoo. Yahoo’s CEO, Jerry Yang, refused to settle down for anything less than $37 per share. Microsoft made some last minute efforts on Friday by raising the bid to $33 per share or an extra 5 billion dollars, but that didn’t work out for Yahoo.
On Saturday, Yang and Yahoo’s co-founder, David Filo, had a face to face negotiation with Microsoft’s CEO, Steve Ballmer in Seattle. Yang told him in person that anything below $37 is unacceptable for Yahoo’s shareholders. The negotiation failed and Microsoft pulled away from the proposed acquisition shortly thereafter.
Yahoo’s stock took a huge nose dive of about 16% and it has come down to $23.90 per share today. Yang must think of a strategy, else he’ll feel the wrath of his fellow employees who are under stock-options. If it continues to drop further, we could see Microsoft knocking Yahoo’s doors again, but this time for a much lower cost. Perhaps, we’ll see Yahoo merging with AOL or Google?
Do you think Jerry Yang took the wrong decision? Tell us through comments.
[Via: AP]
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