Microsoft: See the Yahoo, Take the Yahoo

Microsoft: See the Yahoo, Take the Yahoo

Summary: The messaging out of Redmond about its desires for Yahoo is clear: Microsoft will acquire the company whether CEO Jerry Yang and his merry band of board like it or not.To wit:Dealbook reports that Microsoft will authorize a proxy fight to take Yahoo.

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The messaging out of Redmond about its desires for Yahoo is clear: Microsoft will acquire the company whether CEO Jerry Yang and his merry band of board like it or not.

To wit:

Conclusion: Microsoft is leaking word of its plans for a proxy fight to either force Yahoo's board into a decision, come up with a real deal to counter Redmond's or come along quietly. And if Yahoo doesn't Microsoft will win in a proxy fight because it has two things: Cash and shares that look more attractive even if all they do is pay a dividend.

So what are the moving parts to ponder?

Yahoo shareholders: If given the choice to vote their shares for a Microsoft deal it's highly likely that they will go for it. There's a lot of overlap between the two shareholder bases and they are likely to want the deal to get resolved. Simply put, there's a just right price that will satisfy the overlapping shareholders. Perhaps $31 a share is just right.

Brain drain: Talent is already leaving Yahoo so concerns about bringing teams together and all of that touchy feely stuff is off the table. Sure Microsoft would like to keep most of Yahoo's talent, but if folks are leaving anyway let em. Take the Yahoo brands.

Integration: The thought of Microsoft integrating Yahoo obviously doesn't scare Redmond. Perhaps Ballmer and Co. feel like they have no choice. Or Ballmer thinks he actually has a good plan.

Yahoo's board: This move by Microsoft is going to split the board--especially if options like News Corp. fall to the wayside. How much bargaining power does Yahoo really have?

We're about to find out. There's nothing like a good old fashioned proxy fight.

Topics: Social Enterprise, Banking, Enterprise Software, Legal, Microsoft

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61 comments
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  • D@mn idiots!!

    Hands of my yahoo!!! Yet another reason to despise Mickeysoft. I can't trust my yahoo mail anymore if this goes through. Sigh. It will be a painful migration, moving all my saved mail...but I am outta there if this doesn't fall through.

    Please, please, please, yahoo shareholders - realize that in the long-haul you can get better value from a separate Yahoo!!! The Newscorp possibility is just one of many that fit better than M$.
    Techboy_z
    • I'm with yah!

      If MS ends up getting yahoo, I will be forced to migrate away from yahoo completely. Anybody that thinks MS will improve Yahoo is a fool. Since when has MS improved any company that it has purchased? I will be the most disapointed with having to leave Flikr. Its a great site that works perfectly as is. Add in MS passport and a bunch of 'Live' crap and its now a cluster#$%*.

      I really hope they can strike a deal with News-Corp.
      Stuka
    • Its not "your" Yahoo.

      Users wishes are meaningless in any of this. The shareholders (owners) want their money, they are tired of watching Yang nose dive the company, and thats the name of that tune.

      As for some white knight riding in to save them, not going to happen, this isn't the movies.
      No_Ax_to_Grind
      • Users wishes should be VERY important for MS - a big part of what they are

        buying is an installed base. If a lot of that evaporates, then the deal has less value for Microsoft.

        And, Yang JUST took over, you should wait at least a little while to pass judgment on his job. Though it looks like he will probably NOT get a chance to show what he can do before the buyout happens. And, the MS purchase creates an environment where it will be extremely difficult to execute on anything.
        DonnieBoy
        • Wasting your breath

          No_Ax is born and bread Micrsoft. It doesnt matter what anybody says, he will back them.

          But I agree, the Yahoo user base is huge, and I would say 50% of the Yahoo users that I know will stop using them if MS takes over and changes anything at all.
          Stuka
          • Wrong again.

            I take MS to task when they are wrong, but one company buying another is business as usual. It is only the fanatics that can't seem to come to terms with that fact.

            As far as Yahoo users... Heck, 90% haven't the first clue, all they see is the Yahoo logo. No, there will not be some mass exodus.
            No_Ax_to_Grind
          • We need a poll

            We need a poll...

            Are you planning on dumping yahoo if microsponge gets hold of it?

            Yes

            No

            That would be interesting to see the results of.

            My vote is yes, I plan to jump ship... I'll never use any yahoo services again.. period. No more maps, yellow pages, email, searches, weird news, etc. nada, nil, nothing.
            i8thecat
        • The threat of MS Purchase....

          could actually be a good thing, it may be just the catalyst to get them going.
          mrOSX
          • Yes, it really could be a huge catalyst for Yahoo, but it is also a huge

            distraction right now. And, given Microsoft's deep pockets and determination, the buyout will likely happen. There is a price that MS could offer that Yahoo just can NOT refuse.

            Well, all very exciting. You have to feel for Yang, who just stepped in and was starting to execute a plan, and then this . . . .

            In any regard, Yang will land on his feet with a lot of cash and Yahoo will NOT be his last thing.
            DonnieBoy
          • Too little, too late.

            Get going? Down the pipe maybe but fortunately that won't happen with the MS buy out.
            No_Ax_to_Grind
        • Has that changed MS in the past?

          I hear people saying they want a stripped verion of Windows, didn't happen. They want Office to do xyz, didn't happen. They want Office Live to... Not happening.

          As I said, this is not abotu what users want, its abotu the money, nothing more. (Unless of course you are a fanatic and simply need a reason to bash MS.)

          As to Jerry Yang, he has had since last June and has come up with, ummm, absolutely nothing.
          No_Ax_to_Grind
      • Well said .... errr nope

        "Users wishes are meaningless in any of this"

        spoken like a true Microsoft zealot

        Really, that kind of says it all. MS does not give a rat's behind about it's users, and pro-MS zealots, like No_Ax, consider end users' wishes irrelevant.

        Anyway, I do wish this country would go back to greater regulation. With MS buying Yahoo, there is no benefit to end users, the job market, the economy, or anybody but MS (and even their benefit is very questionable).

        And I hold the same opinion about any hostile acquisition. I'm a stock holder myself (mutual funds in my 401k, and a sprinkling of individual stock), but it's kind of a warped system where shareholders interests are held everyone else's (customers, employees, etc).
        super_J
      • Actually, if you ignore the users your market value goes down.

        Anyone in business knows that if you ignore your client base (especially in an on-line service like Yahoo), your share of the market goes down.
        B.O.F.H.
        • Sure, to some small extent...

          But you and I both know that Joe Average user is clueless beyond the Yahoo logo and even if they do know its MS they don't care. You guys and your portends of the end is almost as funny as "this is the year of the Linux desktop". Neither are happening.
          No_Ax_to_Grind
        • I am sure that most users

          do not care who runs the company as long as they get to continue using that which they have at the moment.
          If they get more thru the deal, then users more users will migrate towards Yahoo.
          GuidingLight
      • A prime example of why...

        ...customer and employee loyalty are at all time highs.

        If corporations exist solely to enrich their shareholders, then there's no reason for anyone else to care if they live or die. If that's the attitude at MS, I'm more than happy to see them go down the drain. After all, I'm not even a customer.
        John L. Ries
  • As predicted

    Would have been surprising if MS had backed down, even if it is in their best interest (too many big egos involved).

    Prediction:

    If the takeover attempt fails, Steve Ballmer will resign as president and CEO of MS, unless he's fired first. This too would be in MS' best interest, though Bill Gates would have to be temporarily called out of retirement.
    John L. Ries
  • Face it, MS

    hired one of the best "take over" guys on the planet, he did his homework well and put a plan in motion Yahoo can not stop no matter how much Jerry Yang might like to. Face it, this is a done deal and the price is not going to go up much if at all.
    No_Ax_to_Grind
    • be very careful of what ou claim

      you claim that blue-ray would not win and all thos fool comment you claim ...... Maybe just maybe Yahoo will hold on maybe a bit more that you may think ...... i hope or i will to burn my yahoo account


      That the problem with shareholding nothing but protitution you show a few buck to a share holder and it get all hyper ..... no long term view or ethic
      Quebec-french
      • No idea what you are talking about

        I never said anything about Blue Ray and could not care less about it.

        As to greedy stockholders, you are way off base. People INVEST their money in a company to recieve the BEST POSSIBLE RETURN. If a company doesn't want to be ran by stockholders, then don't go public with the stock. It really is very simple...

        Tell me, if you put your money in a savings account do you want 5% interest or do you want to use a bank that pays 2% because they are "nice guys"? Pfffttt...
        No_Ax_to_Grind