Print 55 comment(s) - last by mindless1.. on Apr 8 at 11:02 AM

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.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: M$ is similar to The Galactic Empire
By FITCamaro on 4/7/2008 8:41:51 AM , Rating: 4
The Linux crowd is nothing like the Jedi. The Jedi had tons of funding and flew around in bad ass ships, had cool outfits, and lightsabers. Linux guys live in their parents basements, drive around in Pinto's, and have those long, styrofoam pool toys.

RE: M$ is similar to The Galactic Empire
By Quiescent on 4/7/2008 9:46:15 AM , Rating: 3
Most of the real linux gurus have jobs that do well for them. Or they own a business. How else can they afford what they have and still have time to code the patch to a bug in linux?

Then you have the kids who use Ubuntu and think they really know something about Linux. At least I own up to not knowing crap about linux when I use Ubuntu.

I think you've mistaken the gamers for linux nerds.

By TomZ on 4/7/2008 10:21:17 AM , Rating: 2
How else can they afford what they have and still have time to code the patch to a bug in linux?

The unemployed have lots of time on their hands...

By VashHT on 4/7/2008 1:05:33 PM , Rating: 1
Nice, battle one stupid stereotype and then spit out another, makes you look really smart.

Anyway I know a lot of people at my work who game, and so do I, we all obviously have job and our own places.

"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
Related Articles

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki