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Yahoo’s Board Rejects Microsoft’s Deriding Proposal

Pulkit Chandna — Sun, 13 Jul 2008 22:50:49 -0500

Yahoo’s Board has formally rejected a fresh proposal from Microsoft to buy only its search operations. The proposal was advanced to Yahoo on Friday accompanied with a derisory deadline of only 24 hrs. Microsoft had proposed to buy Yahoo’s search operations for $1 billion and promised to pick up 16% stake in the remaining company for $8 billion.

Yahoo rejected the proposal in a press statement citing several grounds for the decision. It believes that the terms of the proposed search-operation buyout are unfavorable for the company’s stockholders. However, it has softened its earlier stance a bit and now appears to favor a full sellout at $33/share, as originally proposed by Microsoft but rejected by it. The fate of the reigning Yahoo Board of Directors, and consequently, the deal will now be decided on August 1 – board election Day.

Image Credit: WatBlog

Icahn Rings Proxy-War Alarm, Says Microsoft Still Interested in Yahoo

Pulkit Chandna — Mon, 07 Jul 2008 18:20:43 -0500

Carl Icahn should feel at home in boardroom coups, after having fashioned a few of them. Along with experience, he has tenacity and a never-say-die attitude, which is rearing its head in the aftermath of Microsoft’s deal with Yahoo. While some people attribute the breakdown of (doomed-from-the-start?) talks between the two tech giants to company culture clash, Icahn is trying his best to agitate Yahoo stockholders into a revolt against the company’s board. Icahn’s fresh missive to Yahoo stockholders claims Microsoft is still interested in buying Yahoo’s search engine business or the entire company.

He reports to stockholders that Microsoft's CEO has personally conveyed his distaste for the current Yahoo board, and so, wouldn’t enter any negotiations with the incumbent board. Ballmer wasted no time in confirming Microsoft’s interest in “a major transaction with Yahoo, such as either a transaction to purchase the "Search" function with large financial guarantees or, in the alternative, purchasing the whole company." But he made it amply clear that negotiations would be resumed only after a new board of directors is elected.

Yahoo wants Microsoft to prove its seriousness and make an offer immediately, if it’s interested in a deal. The company warned in its response that it doesn’t believe a deal – with a new board - would be in the best interest of Yahoo stockholders.

Retired Gates Deems Yahoo Deal Unlikely

Pulkit Chandna — Fri, 27 Jun 2008 21:35:05 -0500

Bill Gates, who gave up his executive responsibilities at the helm of Microsoft today, forthrightly told NBC that he doesn’t think a deal with Yahoo is likely. Coming from Bill Gates – retired or not, this comment sums up the mood at Microsoft.

Yahoo’s brazen snub has sunk in and there seem to be no delusions of even the slightest possibility of a deal now, although Icahn is still interested in the deal. Someone will soon have to don Bill Gates’ mantle and devise strategies to stymie Google’s upsurge.

Image Credit: Richter Scale