Yahoo! Turns Down Microsoft’s Buyout Proposal
February 11th, 2008 Posted in News
Yahoo! has turned down Microsoft’s buyout proposal!
Not much more to say about it - the Yahoo! board turned it down citing that it was not in the best interest of shareholders. Not sure how more money is not in their best interested, but we’ll see what happens over the next few weeks.
So what do you think of the buyout - should Microsoft buy Yahoo!?
February 11th, 2008 at 2:55 pm
Thanks JACL! We have no intention of stopping!
February 12th, 2008 at 1:07 am
I was really excited to here this news, shame nothing is going to happen. Could be the only chance ms and yahoo have to beat google.
February 12th, 2008 at 7:26 am
I agree. However, I don’t think the battle to buy Yahoo! is over yet. In fact, it’s likely just a negotiating tactic. Who takes the first offer anyway?
My prediction is that Yahoo! will be bought in 2008 by Microsoft. Now let’s keep our fingers crossed.
February 12th, 2008 at 11:45 am
Wow, I agree with ckata. I wouldn’t take the first offer either, I would negotiate a larger amount. Personally I believe for the right amount we will see some changes in 2008.
February 12th, 2008 at 12:08 pm
Hey Joshua,
Thanks - I fully believe it will happen this year. They just have to work out the right price.
February 12th, 2008 at 5:01 pm
I think that Microsoft never will buy yahoo!
February 13th, 2008 at 4:03 am
I was realy surprised to know that Yahoo has turned down Microsoft`s buyout proposal.believe for the right amount we will see some changes in 2008.
February 14th, 2008 at 12:20 pm
I heard a prediction of a hostel take over…
February 14th, 2008 at 12:25 pm
Hey Eric,
Yeah - it’s definitely a hostile takeover. MS just worded it very nicely. MS is basically saying we’re going to do what the shareholders want, not necessarily what the board wants. This is far from over - it’s just negotiating time!
February 16th, 2008 at 9:12 am
Ckata,
Hey someone is using my name up here. The comment in by JACL above is someone else.
You should ban them from posting comments. There URL goes to some hair beauty site.
February 16th, 2008 at 9:58 am
Yahoo has been on Microsoft’s wish list for the past few years.
Microsoft will obviously make a higher offer which will probably be rejected again. Then Microsoft will probably go for a proxy fight in what is generally called a hostile takeover.
Yahoo’s entire 10-member board is reportedly up for re-election at the next annual shareholders meeting and I am sure Microsoft will be stacking that meeting to put up their own hand picked people to run for those seats and control. Yahoo’s first mistake was not having staggered elections.
I can guarantee you that Microsoft has already handpicked people to run for the Yahoo’s Board.
What will Yahoo do to counter a hostile takeover?
Its called the poison pill.
The last time I heard about the poison pill was by by professor who taught corporations.
The poison pill works like this:
Yahoo adds to its charter a provision which gives the current shareholders the right to sell their shares to the acquirer at an 100% markup.
Yahoo takes on large debts in an effort to make the debt load too high to be attractive - the acquirer would eventually have to pay the debts.
Yahoo buys a number of smaller companies using a stock swap, diluting the value of the Yahoo’s stock.
Yahoo grants its employees stock options that immediately vest if the company is taken over by Microsoft. the target’s stock.
Microsoft is ready for a fight and so is Yahoo.
February 16th, 2008 at 10:27 am
Yeah, other reliable sources confirmed it. The Yahoo Board of Directors all come up for an election this summer.
The lawyers who set up Yahoo should have advised them about the problems of not having staggered elections. Even nonprofits organizations have staggered elections. What were they thinking?
Microsoft has until mid-March to nominate new Yahoo directors.
This boxing match between Microsoft and Yahoo has Google watching in the front row seats eating popcorn.
February 17th, 2008 at 12:11 pm
I think ultimately this has to go through, in order for Microsoft or Yahoo to be a competitive force they need to get together on the search engine side. Obviously Yahoo is holding out for a higher price or are actually thinking they can compete. They’ve lost the market share and there are very few instances of companies getting back market share for the same product once it’s lost, just ask Ford.
February 18th, 2008 at 9:50 am
Hey Logo - I am pretty sure they are just using this as tactic to drive up the share price.
February 18th, 2008 at 9:57 am
Hey JACL: this entire acquisition is just fantastic to watch. I for one am really holding out for it!
February 18th, 2008 at 4:12 pm
Ckata, I agree. The entire acquisition is really fantastic to watch.
Yahoo’s poison plan is set up based on issuing stock at cheap prices once Microsoft owns 15% of the Yahoo Shares. Its unclear when is the best time to buy Yahoo stock. I would imagine, though every time Microsoft comes courting the shareholders, the prices becomes artificially inflated.
February 25th, 2008 at 6:25 pm
I may be the minority here, but I don’t want to see it happen. Micro$oft is big enough so as it is. Granted Google is a behemoth in its own right. I still don’t want to see micro$oft just throwing money at their 3rd place position in order to fix it.
February 25th, 2008 at 11:27 pm
Hey Ox,
That’s a good point. My only concern is that neither Yahoo! or MS have the ability to take on Google themselves.
MS needs some real search experts on staff. perhaps if they covertly funded a search startup and managed to hire away talent from Google it could happen with Yahoo! MS certainly has the deep pockets to do such a thing.
February 28th, 2008 at 9:55 am
This is like the most awsome battle of the year. Yahoo -vs- microsoft. Looks like i have to wait to see the outcomes. My votes to microsoft!
March 12th, 2008 at 2:56 am
I do not see the point in Yahoo becoming a part of Microsoft although it is said that Yahoo has some internal problems but those problems can be solved. Microsoft has its own problems to solve and Yahoo would only bring a new kind of problems and personally I don’t want to see Yahoo under Microsoft.
March 13th, 2008 at 9:10 pm
I hope Microsoft doesn’t make this buy. They are big enough, and we need at least a little competition out there.
March 13th, 2008 at 9:20 pm
Hey Randy!
I agree with you on the competition part. I think with this acquisition it will really give Google a competitor to force them to innovate. The next competitor to give them all a run for their money is http://www.cuill.com which has been started up by ex Googlers!
December 25th, 2009 at 2:24 pm
Thank you allot for this detailed post!
i found a youtube video about xbox live hacks: that I would like to share- Xbox Live hacks…
but seriously, great post and thank you alot !!
i look ahead to your next article !!
:-)
January 9th, 2010 at 2:36 am
Thanks For Useful Sharing.