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Steamed Microsoft CEO Steve Ballmer is ready to take on Yahoo in a proxy fight should they refuse to be assimilated into the company.
Microsoft's CEO delivers Yahoo board final ultimatum

Microsoft CEO Steve Ballmer, not typically known for being a reserved businessman, is on the verge of losing his patience with Yahoo, he announced in a letter to Yahoo's board.  Ballmer is a strong advocate of the merger, but the board despite arranging some meetings with Yahoo management and Microsoft management last month, has done little to consider the merger since rejecting Microsoft's $44.6B USD offer.

In fact the board has actively fought getting swallowed into the Microsoft empire, by acquiring additional advertising through Maven and releasing new services.  They also tried futility to broker a deal with rival Google for joint advertising.  Yahoo refuses to accept Microsoft's valuation of the company, despite the fact that it is significantly above their stock price.  Yahoo insists their company is worth substantially more.

In his letter Ballmer expressed frustration at this "limited interaction," stating that what little action the pair had was not "meaningful."  He states that this is "unfortunate."  Ballmer fumes, "Our goal in making such a generous offer was to create the basis for a speedy and ultimately friendly transaction. Despite this, the pace of the last two months has been anything but speedy."

Ballmer writes that Yahoo has two choices -- accept the offer within three weeks and prepare for the merger in earnest or face a proxy battle in which Microsoft will seek to oust the Yahoo's board of directors and replace them with a new pro-Microsoft board.

Microsoft increasing aggression in its hostile takeover attempt seems to confirm reports by analyst that Microsoft would not raise its bid, which offers a 62 percent premium on the company.  Ballmer writes angrily, "The public equity markets and overall economic conditions have weakened considerably.  At the same time, public indicators suggest that Yahoo!’s search and page view shares have declined. Finally, you have adopted new plans at the company that have made any change of control more costly."

Microsoft hopes to avoid a proxy battle, but is willing to enter one if necessary.  Such a battle would be costly both financially and to the reputation of Microsoft.  However, it would be particularly costly to Yahoo, which would be rocked by having its board deposed.  Ballmer states that if the terms are not met, the proxy battle will begin in three weeks.  Warns Ballmer, "If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company."

A Yahoo spokesman would not comment on the letter.  For the full Ballmer letter, refer here.


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Don't take this article seriously.
By Domicinator on 4/6/2008 6:06:16 PM , Rating: 5
If it's by Jason Mick and it's about Microsoft, chances are that it's highly exaggerated and unnecessarily anti-Microsoft. It's become a disturbing pattern on DailyTech, and I wish they'd put a stop to it.




RE: Don't take this article seriously.
By Nekrik on 4/6/2008 6:38:51 PM , Rating: 5
Completely agree, he's a sensationalist at best and does more damage to their reputation than the page hits are worth. Luckily most of the stories are covered in better fashion on other sites which I noe tend to frequent more often than I did before.


By dever on 4/7/2008 4:07:18 PM , Rating: 3
His main sensationalist stories tend to be about far-off technologies that are supposed to rescue us from the air we exhale and upon which plants depend.


RE: Don't take this article seriously.
By mankopi on 4/6/2008 7:48:43 PM , Rating: 5
Thank goodness someone else noticed this. I dont know if Jason has stocks with Apple because all he does is exaggerate any negatives about microsoft and ignore the positives. Read his "NEWS" about Apple, compare that with "NEWS" about Microsoft. Hey Jason, if you hate microsoft so much, you need to find another way of doing your job because it is now obvious you cannot be objective in reporting NEWS. Maybe you should focus more on OPINIONS.


RE: Don't take this article seriously.
By Domicinator on 4/6/2008 9:38:10 PM , Rating: 5
I try to call him out whenever I see one of these stories on DailyTech. I always know when I see certain headlines that I am going to click on them and see that they are written by Jason Mick. And they are almost always accompanied by a crazy picture of Ballmer. (Not that Ballmer doesn't bring that on himself.) DailyTech claims that Jason Mick doesn't even own a Mac. I call shenanigans. He writes these anti-Microsoft articles in an exaggerated way that only a Mac fanboy can write.

In the long run it doesn't matter. Apple saw a big jump in Mac sales when the Intel machines started hitting the market. Now the Windows users can have cool looking hardware while still being able to use Boot Camp to run Windows. In other words, they get the good looks without having to use Mac OS. That makes Apple just another hardware maker.


By DerwenArtos12 on 4/7/2008 3:31:04 AM , Rating: 3
You clearly haven't talked to any die-hard penguins lately if you think a macapheliac is the only type of person who could/would sensationalize a story pertaining to microsoft in a negative light.


By Quiescent on 4/7/2008 9:52:00 AM , Rating: 2
No. I think you're mistaken. Apple doesn't make their hardware. They just design what macs should looks like. Personally I think the macbooks don't look stylish at all.

Anyways. I agree. There is some biased articles here.

However, because of how Steve Ballmer is, he's my hero. He's so crazy it's funny. Steve Jobs is crazy, but he's not funny crazy.


By cochy on 4/6/2008 11:25:52 PM , Rating: 3
If memory serves he's written critically about Apple at times.


RE: Don't take this article seriously.
By kmmatney on 4/6/2008 10:21:01 PM , Rating: 5
I read the actual letter and I have to agree - they really sensationalized the article - more than they had to.


By Creig on 4/7/2008 8:39:59 AM , Rating: 4
That's exactly what I was going to say after reading the actual letter. Jason, you really need to tone it down. This is DailyTech, not The Enquirer.


By PrinceGaz on 4/6/2008 10:24:00 PM , Rating: 2
As an experienced DT reader, you should know that a few reporters or bloggers report stories biased heavily in a certain direction. Not all of them are like this, some are very fair in reporting stories.

Whilst I believe there should be a site FAQ pointing out the preference of various posters, any regular visitor already knows what to expect of them. For new visitors, it would be helpful to include a link to an unbiased third-party's short description of the author's beliefs, so they know that some people here only provide links to support one side of an argument, whilst ignoring far more links which are against it.


RE: Don't take this article seriously.
By TomZ on 4/7/2008 10:23:24 AM , Rating: 4
I've basically stopped reading DT because of unprofessional (childish) articles like this. They might be fun to write for the author, but I think they hurt DT in the long run.


RE: Don't take this article seriously.
By mondo1234 on 4/7/2008 11:40:37 AM , Rating: 2
Agreed, but it goes both ways. I noticed this is true of Jason Mick, but it has also been true of Brandon Hill (on the MS side of things). I run mixed networks, and I dont feel the need for "Cheerleading" whether its Windows, Mac or otherwise. Also, I dont feel the need for preference "Bashing" whether its Windows, Mac or otherwise.
I thought DT was a tech site, but I have been corrected that its only a blog. Its not always about the facts, but the spin the author puts on the story. I am not sure why its the "Best kept secret on the web". Fanboy sites are a dime a dozen.


By TomZ on 4/7/2008 12:04:17 PM , Rating: 4
I agree - we are looking for a flat, neutral reporting - "just the facts" as they say. No bias, no hype, etc.

But I also wonder maybe if fanboy sites get more pageviews than a neutral news site? Maybe that is the motivation?


By RMSe17 on 4/7/2008 11:28:09 PM , Rating: 3
Clearly, you haven't stopped.


"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot

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