Ballmer To Yahoo: Join Within 3 Weeks or Suffer
April 6, 2008 3:00 PM
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
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
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,
"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
Sources: Microsoft Won't Up Yahoo Bid
April 1, 2008, 11:48 AM
Yahoo, Microsoft Execs Meet to Discuss Buyout
March 14, 2008, 2:12 PM
Steve Ballmer Gets Candid at MIX08
March 7, 2008, 12:24 PM
Yahoo's New Service Creates a Buzz
February 26, 2008, 2:25 PM
Google Doesn't Want To Be Yahoo's Ad Buddy Anymore
February 14, 2008, 12:23 PM
Google plans ultra-fast wireless Internet for Research Triangle Park, N.C.
August 12, 2016, 6:30 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Most Popular Articles
Apple iOS Contains Secret One-handed Keyboard Code
October 22, 2016, 5:00 AM
The Unlocked Moto Z Play Launches for $449.99 Today.
October 22, 2016, 5:00 AM
The New HP Spectre: Revamped and Ready
October 23, 2016, 6:00 AM
New Way to Read Data on Ulta Hard Drives
October 23, 2016, 9:38 AM
Car Insurance - The Hidden Discriminatory Practise
October 18, 2016, 5:00 AM
Latest Blog Posts
From Time to Time, The Unbelievable and Unimaginable Happens!!!!
Oct 28, 2016, 4:56 AM
Key EpiPen Competitor Out in 2017 At ' Very Low' Cost
Oct 27, 2016, 5:30 AM
Researchers use CRISPR to Accelerate Search for HIV Cure
Oct 26, 2016, 5:00 AM
Medical Council of India Makes Generic Medicines Mandatory
Oct 25, 2016, 5:00 AM
MacBoo Pro 2016: Release date Oct. 27
Oct 24, 2016, 7:16 AM
Mac Users, Try this if Your Mac is Infected?
Oct 23, 2016, 7:00 AM
Tips to Prevent Smartphones From Overheating:
Oct 22, 2016, 5:00 AM
Nasa Flies Drones at Nevada Airport
Oct 21, 2016, 8:21 AM
T-Mobile Data Problems
Oct 20, 2016, 10:17 AM
Annoying Apple Watch Problems and How to Fix Them
Oct 20, 2016, 5:00 AM
Your Mail May Soon Be Delivered By Robot
Oct 19, 2016, 9:34 AM
2018 Jeep Wrangler Prototype Sells At Junkyard
Oct 18, 2016, 5:00 AM
Samsung Shines with Gold Edition Tablet
Oct 17, 2016, 9:24 AM
Tesla Hints Mysterious Product Debut for October 17th
Oct 16, 2016, 10:14 AM
Samsung Galaxy Note 7 Phones on US flights
Oct 15, 2016, 5:00 AM
Comcast Fined $2.3 Million For Unconfirmed Services Charged To Customers
Oct 14, 2016, 5:00 AM
“American singer / songwriter “Bob Dylan is awarded 2016 Nobel Prize in Literature.
Oct 13, 2016, 10:33 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information