Yahoo : Microsoft – Back in action
July 8, 2008 by Admin
Yahoo has resumed negotiations with Microsoft after turning down a takeover offer last month. After rejecting Microsoft’s offer and claiming its value was higher than the bid amount, Yahoo faced criticism from its own shareholders, who would have stood to profit from the deal. Now, the companies are said to be negotiating business ventures other than a direct takeover.
Meanwhile, billionaire and Yahoo stakeholder Carl Icahn has brought a massive stake in Yahoo, estimated at 59 million shares, in order to pressure the board of directors into inviting and approving a fresh bid from Microsoft. He was threatened to nominate an entirely new board which would reconsider the decision.
Meanwhile, Yahoo has also postponed its annual shareholders’ meeting, in what could be an attempt to prevent Icahn from tabling his motion to oust the current Yahoo board. Even if he is successful at convincing a majority of shareholders to vote in a new board, he would still have to persuade Microsoft to make a fresh bid. Yahoo CEO Jerry Yang has also published an open letter to Icahn calling his actions “misguides†and stating that the current board has the interests of all shareholders in mind and has chosen the best way to maximize profits.
Yang and co-founder David Filo both own ten percent of Yahoo each, while other top officials hold up to five percent each.
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