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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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Anyways, get well soon!...
wrote, on May 6th, 2008
WOW! The Microhoo saga ends! Or do you think it is a strategic withdrawal for Microsoft, deliberately causing the share price to nosedive so they can get it for a better price later on? To be continued……
wrote, on May 6th, 2008
Jerry Yang is acting on behalf of its shareholders. It would be unfair to go below, what is fair and that is his decision. Microsoft definitely played a role in the share drop and Im sure acquired considerable shares at the lower rate.
wrote, on May 6th, 2008
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wrote, on May 6th, 2008
I heard about this over the weekend, and heard that Microsoft was just throwing that high $number$ out there and then Yahoo! would go for it but they would eventually pay lower. Yahoo! was smart though, and revealed that MS was not really willing to pay that much. Yahoo! also felt that MS was undervaluing them.
wrote, on May 6th, 2008
i think its a great strategy for microsoft. they’ll be back when the yahoo stock price hits rock bottom
wrote, on May 6th, 2008
This is just a tactical withdrawal. The story is far from over.
wrote, on May 7th, 2008
I wonder what’s Microsoft’s next prey
Facebook, MySpace or something else…
wrote, on May 7th, 2008
Lets see how this turns out in the end. As you pointed out, Microsoft will probably be making another bid after shares fall even more, and they might just end up grabbing yahoo for less then the proposed $33 per share offer…