Published in News
Microsoft still pursuing Yahoo!
by David Stellmack on04 March 2008
Ballmer tells audience at CeBIT
Microsoft’s CEO, Steve Ballmer, told an audience at CeBIT that Microsoft is still interested in acquiring Yahoo!, but did not indicate whether Microsoft would pursue a proxy fight to remove the Board of Directors of Yahoo!, who had voted to reject Microsoft’s initial offer of $44.6 billion in cash and stock.
Instead, Ballmer mentioned that the deal between the two companies still has tremendous value and that it is his hope that the two companies can reach a compromise to allow the deal to move ahead. The question remains whether Microsoft will pursue a hostile takeover bid for Yahoo! In the event a compromise is not reached.
Yahoo! Has struggled to compete with mega giant Google Inc. in the online advertising market space and Microsoft’s approach to Yahoo! has been that the combined forces of Microsoft and Yahoo! can effectively compete with Google.
Unfriendly takeovers do not generally create harmony among the company staff being acquired. Also, the value of the Microsoft offer on February 1st to Yahoo! has already declined by several billion dollars (yes that is billions) as Yahoo!’s share price has declined precipitously since the initial offer was made.
This looks to be a fight if neither side budges from its current position. We’ll keep you posted.