Well I am back with all the latest, juicy bits of information on the Microsoft-Yahoo! deal. While we were having fun on the weekend, both these companies were busy chalking out their strategy. And with the next move, this is what the chess board looks like- Yahoo! has decided to prolong this takeover bid.
For all you people who thought that Yahoo! would give in without a fight are in for a surprise.Yahoo's board has declared that Microsoft’s $44.6 billion offer “massively undervalues" the company. According to a report in The Wall Street Journal, Yahoo is planning to turn down Microsoft's offer.
Even though I may not know what is going on in their boardroom, but one thing is as clear as crystal-Yahoo is aiming at milking as much as they can from this deal. Yahoo! has given an indication that it might consider the offer if Microsoft is ready to shell out at least $40 a share. Such a settlement would increase the worth of Microsoft's original cash-and-stock bid by more than $12 billion.
Microsoft on its part is hesitant to launch a proxy fight to push out Yahoo's board. A fight could increase the probability of major Yahoo employees leaving the company. Their endeavor appears to seamlessly blend the 2 companies.
Now the question that plagues everyone’s mind is how far Microsoft will go to get Yahoo! in its kitty. Microsoft has $21 billion in cash and Chris Liddell; the chief financial officer disclosed last week that Microsoft may have to borrow money to raise some amount of the cash needed to finance the deal.
To me this latest move is nothing but typical merger-and-acquisition maneuver. Only time will tell if this deal turns out to be a hostile takeover in the end.
For all you people who thought that Yahoo! would give in without a fight are in for a surprise.Yahoo's board has declared that Microsoft’s $44.6 billion offer “massively undervalues" the company. According to a report in The Wall Street Journal, Yahoo is planning to turn down Microsoft's offer.
Even though I may not know what is going on in their boardroom, but one thing is as clear as crystal-Yahoo is aiming at milking as much as they can from this deal. Yahoo! has given an indication that it might consider the offer if Microsoft is ready to shell out at least $40 a share. Such a settlement would increase the worth of Microsoft's original cash-and-stock bid by more than $12 billion.
Microsoft on its part is hesitant to launch a proxy fight to push out Yahoo's board. A fight could increase the probability of major Yahoo employees leaving the company. Their endeavor appears to seamlessly blend the 2 companies.
Now the question that plagues everyone’s mind is how far Microsoft will go to get Yahoo! in its kitty. Microsoft has $21 billion in cash and Chris Liddell; the chief financial officer disclosed last week that Microsoft may have to borrow money to raise some amount of the cash needed to finance the deal.
To me this latest move is nothing but typical merger-and-acquisition maneuver. Only time will tell if this deal turns out to be a hostile takeover in the end.
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