Menu
Microsoft to Yahoo: Make deal or face proxy fight

Microsoft to Yahoo: Make deal or face proxy fight

Microsoft CEO threatens to lower price if forced to take an offer directly to Yahoo shareholders

Microsoft over the weekend threatened Yahoo's board of directors with a proxy battle if it won't agree to a buy-out in the next three weeks.

Breaking nearly two months of silence since Yahoo's board rejected Microsoft's US$44.6 billion bid, Microsoft's CEO Steve Ballmer sent an open letter Saturday to Yahoo saying it is prepared to take its offer directly to shareholders.

In blunt and harsh language, Ballmer reiterated Microsoft's opinion that its offer was "generous" and said the company had expected that a deal would be struck swiftly. "Despite this, the pace of the last two months has been anything but speedy," he wrote.

Ballmer also threatened to lower the price of Microsoft's offer if it is forced to mount a proxy battle.

"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," he wrote.

Since it rejected Microsoft's offer Feb. 11, claiming it was too low, Yahoo has been holding out for a better offer from another company or the opportunity to strike up a partnership that would save it from agreeing to Microsoft's bid. However, Yahoo has so far been unable to negotiate another deal.

Ballmer used this leverage in the letter, telling Yahoo that Microsoft's offer is "the only alternative" to give its shareholders a fair return on their investment and input into the future of the company.

"By any fair measure, the large premium we offered in January is even more significant today," Ballmer said. "We believe that the majority of your shareholders share this assessment, even after reviewing your public disclosures relating to your future prospects."

He also accused Yahoo's executives of being unwilling to negotiate with Microsoft, and said Yahoo's stalling is wasting valuable time the combined company could be using to be more competitive in the Internet business.


Follow Us

Join the newsletter!

Error: Please check your email address.

Featured

Slideshows

Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments