Sunday, May 18, 2008
Microsoft Considers Limited Yahoo Transaction
Here we go again. I think I may have to start a seperate section just for this hare brained deal. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.
Wall Street Journal report says that in the week before Microsoft withdrew its offer for Yahoo, the two companies briefly discussed the possibility of Microsoft's buying just Yahoo's Web search business, say people familiar with the matter, though an agreement wasn't reached.
Don't read too much into this announcement, as it merely states what everyone knew anyway. Microsoft is just waiting to get it's hands on Yahoo. This new announcement of the possibility of a transaction with Yahoo! Inc. limited to their search business (either a full buyout or an ad deal a-la-Google) is not going to happen, because Yahoo would rather do the same with Google, and secondly, and it doesn't benefit Yahoo shareholders in any way. This move is likely an attempt to head off the ad deal between Yahoo and Google which I mentioned won't be happening in the previous post.
In related news, Joel Friedlander, the attorney for two Detroit city pension funds who have filed suit against Yahoo for rejecting Mirosoft's offer, has now submitted a letter to the judge handling the case which says that the Yahoo Board is concealing evidence. Report by Seattlepi.com says that the concealed documents, filed in Delaware Chancery Court, discuss a severance plan Yahoo's board approved soon after Microsoft's bid on Jan. 31. Critics have said that the plan, which gave up to two years of salary to Yahoo employees who resigned "for good cause" or were fired in the wake of an acquisition, was intended to make a takeover prohibitively expensive. Also redacted were notes of a meeting between Yahoo CEO Jerry Yang and Microsoft CEO Steve Ballmer. A hearing on the request to unseal the documents has been scheduled for Tuesday, The Associated Press reported Friday, citing Mark Lebovitch, another lawyer representing the shareholders.
This could be fun. Couple the bad publicity when the case is heard and/or the documents made public, along with Icahn nominating his slate of candidates to the Yahoo Board, Google possibly rejecting an ad deal, and Microsoft expressing renewed interest and possibly co-operating with Icahn and other Yahoo! shareholders. If all of this happens on schedule, Yahoo could fold up and agree to be sold even sooner than expected.
Wall Street Journal report says that in the week before Microsoft withdrew its offer for Yahoo, the two companies briefly discussed the possibility of Microsoft's buying just Yahoo's Web search business, say people familiar with the matter, though an agreement wasn't reached.
Don't read too much into this announcement, as it merely states what everyone knew anyway. Microsoft is just waiting to get it's hands on Yahoo. This new announcement of the possibility of a transaction with Yahoo! Inc. limited to their search business (either a full buyout or an ad deal a-la-Google) is not going to happen, because Yahoo would rather do the same with Google, and secondly, and it doesn't benefit Yahoo shareholders in any way. This move is likely an attempt to head off the ad deal between Yahoo and Google which I mentioned won't be happening in the previous post.
In related news, Joel Friedlander, the attorney for two Detroit city pension funds who have filed suit against Yahoo for rejecting Mirosoft's offer, has now submitted a letter to the judge handling the case which says that the Yahoo Board is concealing evidence. Report by Seattlepi.com says that the concealed documents, filed in Delaware Chancery Court, discuss a severance plan Yahoo's board approved soon after Microsoft's bid on Jan. 31. Critics have said that the plan, which gave up to two years of salary to Yahoo employees who resigned "for good cause" or were fired in the wake of an acquisition, was intended to make a takeover prohibitively expensive. Also redacted were notes of a meeting between Yahoo CEO Jerry Yang and Microsoft CEO Steve Ballmer. A hearing on the request to unseal the documents has been scheduled for Tuesday, The Associated Press reported Friday, citing Mark Lebovitch, another lawyer representing the shareholders.
This could be fun. Couple the bad publicity when the case is heard and/or the documents made public, along with Icahn nominating his slate of candidates to the Yahoo Board, Google possibly rejecting an ad deal, and Microsoft expressing renewed interest and possibly co-operating with Icahn and other Yahoo! shareholders. If all of this happens on schedule, Yahoo could fold up and agree to be sold even sooner than expected.
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