Microsoft sets a three-week ultimatum for a Yahoo decision
Following earlier news that Microsoft was recalculating its $44.6 billion bid for Yahoo, it has become clear what the company has decided to do. Microsoft has thrown down the gauntlet, as evidenced by a letter Saturday from CEO Steve Ballmer to Yahoo's board of directors. Here's the quote that sums up the entire letter:
"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."
Microsoft's big bid for Yahoo
This certainly is sending a strong message to Yahoo that almost nothing can be done to derail Microsoft's acquisition of the company. Rubbing salt into the wound, Microsoft adds, "It is unfortunate that by choosing not to enter into substantive negotiations with us, you have failed to give due consideration to a transaction that has tremendous benefits for Yahoo!'s shareholders and employees," in an attempt to stir up a response from Yahoo's board.
Since everything has been laid out and is now on the table, we are in for a very interesting three weeks. A hostile takeover of Yahoo would be really ugly and you can bet that Microsoft does not want to take that route, but it appears that they will if they have to.
Harrison Hoffman is a tech enthusiast and co-founder of LiveSide.net, a blog about Windows Live. He is a member of the CNET Blog Network, and is not an employee of CNET. Disclosure.
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Of course, why is MS challenging Y! to go the faster way?
"If" MS is sure that it can win a "proxy contest to elect an alternative slate of directors" or that it can get an OK from "shareholders"... why will it press Y!?
Only because it is "cheaper" (or less expensive)?
Or, it is that they try (or evaluate) the "proxy contest" and voters get to ask "too much" to please MS desires? Or it is to "risky" to go --barehands-- to the shareholders' meeting?
If they take the last lane, maybe they would have to "rise the price" to be sure to win... Oh, win... And what if shareholders "say no"? (Maybe at "that" price?)
What would happen with a MS dealt down by shareholders?
(How many chairs will Ballmer throw away?)
I think that MS know that things are become quite risky now and they are trying to grip them all.
(As a side comment, something similar to the ISO standarization vote.)