Yahoo! Up for More Negotiation with Microsoft

Rob Williams

Rob Williams

Editor-in-Chief
Staff member
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From our front-page news:
Who needs a television when all the drama can be found online? That's what the Microsoft/Yahoo! debacle has been since it began, and it's sure not losing its lustre quite yet. Over the weekend, Steve Ballmer, CEO of Microsoft, withdrew the bid to acquire Yahoo!, and I doubt many would disagree that their offer was generous at $31 a share, or a 61% premium.

But now, Yahoo! looks nothing but red in the face. Chances are good that they were not planning on Microsoft dropping out, especially with the companies adamant 'we're not going anywhere' attitude. But, it happened, and now Yahoo! is feeling sick to the stomach. After all, they could have been bought for well over $40B, but now they are just sitting pretty, unsure of what's next.

Like a heart-broken teenager, Yahoo!'s CEO Jerry Yang and company have now stated that they'd be up for more negotiation with Microsoft, and that they'd be willing to go lower than the $37 per share that they demanded. AKA: We wanted more money, but didn't expect you to jump ship so fast. All I know is that this drama contains the perfect blend of ingredients for either a hit emo song or new series on the CW.

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Yahoo is getting blasted by its largest shareholder, Capital Research Global Investors, one of the most respected investment institutions on Wall Street. Gordon Crawford, a portfolio manager with the firm remarked in the WSJ article, "I'm extremely disappointed in Jerry Yang, I think he overplayed a weak hand. And I'm even more disappointed in the independent directors who were not responsive to the needs of independent shareholders."

 Source: DailyTech
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madmat

madmat

Soup Nazi
I'd heard on Regis & Kelly that Microsux had reached $33 a share before backing out...


Not that I rely on Regis & Kelly for my tech news mind you.
 
b1lk1

b1lk1

Tech Monkey
I think he just initiated the final downfall of Yahoo. He had a great offer and greed made him do something very stupid. He'll still walk away a very rich guy even if he manages to totally kill off Yahoo, but he really porked the stockholders/investors. I see a bid to have him removed as CEO coming very soon to a theater near him.
 
Rob Williams

Rob Williams

Editor-in-Chief
Staff member
Moderator
The fact that you watch Regis & Kelly makes me wonder about you, Matt ;-)

I agree, Yahoo! got greedy and are now kicking themselves in the ass. Yahoo!'s stock went sky-high with first mention of the potential buyout, while Microsoft's stock plummeted. Interesting how that works.

Who else is willing to pony up over $40B for the company? I can't think of a one. Microsoft has cash to blow, and Yahoo! would have been a good purchase, regardless of what some skeptics say.

Any increased competition to Google has got to be a good thing.
 
madmat

madmat

Soup Nazi
Rob Williams said:
The fact that you watch Regis & Kelly makes me wonder about you, Matt ;-)

I agree, Yahoo! got greedy and are now kicking themselves in the ass. Yahoo!'s stock went sky-high with first mention of the potential buyout, while Microsoft's stock plummeted. Interesting how that works.

Who else is willing to pony up over $40B for the company? I can't think of a one. Microsoft has cash to blow, and Yahoo! would have been a good purchase, regardless of what some skeptics say.

Any increased competition to Google has got to be a good thing.
Click to expand...

Actually I don't watch Regis & Kelly, I was in the mechanic shop getting a tire fixed and the guy behind the counter had it on in the waiting room. Yeah, that's the ticket.
 
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