The Gig’s up: MSFT to YHOO: 3 weeks or we come and get you

By Kip Kniskern | In News | Posted April 5, 2008 9 comments

Where there’s smoke, there’s bound to be fire, and yesterday’s leaked warning shots across Jerry Yang’s bow resulted in a letter today from Steve Ballmer to Yahoo!, saying in effect: take the offer we have on the table, or we come and get you via proxy in three weeks for a much lower price.  From the Microsoft press release:

Given these developments, we believe now is the time for our respective companies to authorize teams to sit down and negotiate a definitive agreement on a combination of our companies that will deliver superior value to our respective shareholders, creating a more efficient and competitive company that will provide greater value and service to our customers. 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. The substantial premium reflected in our initial proposal anticipated a friendly transaction with you. If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal.

Ballmer lays out some pretty compelling reasons for Yahoo! to act quickly, and it really looks like their backs are up against the wall.  Interesting that the letter comes on Saturday, giving Yahoo! a little time before all hell breaks loose in the markets on Monday.  Man this is getting fun :).

Posted April 5th, 2008 at 4:33 am
Category: News
  • oli.burgess

    I wish Yahoo! would hurry up and accept. The longer it leaves it, the further the strides forward Google takes.

  • Mephiles

    I think Yahoo! want to have some final achievements before they merge.

  • quikboy

    I think MS should just consider buying A9 instead. Owning Amazon and IMDB is far more appealing, than dealing with Y!.

    I also wished MS would give exact benefits as to how they’ll take the exisitng Y! platform and make it better. Or else nobody wants to see MS take it. Most people assume the worst, though MS has improved in some internet technologies.

  • BV2312

    I just hope, should Yahoo accept the merger is done properly and not ruined by employees and the service becomes better rather than being bad!

  • wargarurumon

    well its not sure if the majority of the shareholders want a takeover, so its a bit of risky shot to do it that way, but quite likely

    but i just can’t help to wonder how ms is going to integrate everything with what they got or if they are even going to do that

  • WyzyrdMyrrlyn

    about time….we’re in the third month since the acquisition offer announcement

    i always knew those yahoos would fall, and i am glad to see them fall to msft. hopefully the best of both worlds will survive.

    hooray microhoo!

  • tophtucker

    I agree that there’s a lot to be worked out, and I am a little nervous about it all. But as Kip said, this is corporate drama at its finest. :)

  • BV2312

    Maybe make this into a tech show LOl and sell the rights to TV

  • oli.burgess

    I really hope Microsoft don’t wreck Yahoo! by getting rid of Y! Mail and other services and replacing it with windows live just for branding consistency across its operating system and web services. :(