Another Microsoft Offer, Another Yahoo Rejection
Recently, Microsoft and Carl Icahn got quite cozy, and the budding relationship spawned a new Yahoo offer. Despite Yahoo’s insistence that they remain open to an offer from Microsoft, they have, once again, rejected the software giant.
The new deal would split up Yahoo, selling the search portion to Microsoft. That sale would be overseen by Carl Icahn and his board.
The new proposal was rejected for the following four reasons:
Roy Bostock, Chairman of Yahoo! said, “This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo!’s stockholders in mind. Clearly, Microsoft, having failed to advance in search, is aligning with the short-term objectives of Mr. Icahn to coerce Yahoo! into selling its core strategic search assets on terms that are highly advantageous to Microsoft, but disadvantageous to Yahoo! stockholders. Yahoo’s Board of Directors will not allow that to happen. Yahoo!’s Board remains open to any transaction that delivers full value to our stockholders – we just do not believe such a transaction should be dictated by Microsoft and a single short-term investor.”
What do you think of Microsoft’s latest offer? Was it just posturing in advance of Yahoo’s Aug 1 shareholders meeting? Let us know in the comments.