Microsoft and Yahoo are at it again with this whole acquisition thing, and this time we find it a bit humorous. It started out on Saturday when Microsoft posted a press release with a letter that Steve Ballmer sent to Yahoo. Yahoo responded of course, and they too posted their letter in a press release. To us it seems interesting that their letters to each other have been posted as press releases and it makes us wonder whether the receiving side even received a hard copy of the letter before they saw it online? This is turning out to be a very public situation between the two companies. Anyhow, back to the letters.
In the letter to Yahoo, Steve Ballmer talked about how Microsoft’s goal with making “such a generous offer was to create the basis for a speedy and ultimately friendly transaction” He then went on to threaten saying, “If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board.” Is that what you call friendly? Yahoo called Ballmer out on this and essentially said threatening wasn’t going to do any good. They say, “we consider your threat to commence an unsolicited offer and proxy contests to displace our independent Board members to be counterproductive and inconsistent with your state objective of a friendly transaction.”
Ultimately, Yahoo said that Microsoft’s offer simply isn’t enough and undervalues them. They stated that they are open to all alternatives which they say could include a transaction with Microsoft, if and only if Microsoft offers a price that “fully recognizes the value of Yahoo on a standalone basis.” Yahoo clearly stated that they will not allow anyone to come in and buy them unless the offer is good enough. Does that mean Microsoft will be forced to up their offer if they even want a chance at purchasing Yahoo? We know they’ve got the money, it’s just a matter of whether they want Yahoo bad enough to cave in. We think they do…
