Microsoft, Yahoo meet again; Could Microsoft walk?

Microsoft, Yahoo meet again; Could Microsoft walk?

Summary: Update: Reuters has reported that Microsoft is evaluating its bid and could walk away from the deal. Yahoo shares are down 5 percent in afterhours trading.


Update: Reuters has reported that Microsoft is evaluating its bid and could walk away from the deal. Yahoo shares are down 5 percent in afterhours trading. Looks like things are about to get really interesting.

Maybe this is just saber rattling, but if you're a Yahoo shareholder you have to be spooked. There will be a lot of updated posts on this one.

Original post begin:

Welcome to installment 4,500 of the Microsoft-Yahoo drama. Microsoft and Yahoo reportedly had informal talks this week, but got nowhere.

Now what? CNBC's Jim Goldman reports that the two have chatted this week, but Microsoft wouldn't raise its offer and Yahoo wouldn't go beyond informal talks (see Microhoo roundup).

Goldman reports:

I hear there's an important meeting at Yahoo coming up this Monday that will include top execs and division leaders. I'm hearing it's an all-hands-at-the-executive-level type of thing. Is this the meeting that Microsoft has been waiting for? Is Yahoo ready to throw in the towel and it's holding this meeting to notify managers that a deal is imminent?

Goldman argues that its unlikely Microsoft will walk and I'm inclined to agree. In any case, the pressure will mount on Yahoo management.

What I really don't get is why Microsoft doesn't just start accumulating shares. There are no other bidders and Yahoo is well below Microsoft's bid. Enough of this banter. Steve Ballmer needs to start buying some Yahoo shares.

Topics: CXO, Microsoft, Social Enterprise

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  • Aggressive Takeover

    MS hasn't been aggressive after the initial unsolicited bid. It hasn't been public about its background activities like choosing an alternative board of directors.. etc etc. But MS can be aggressive, its just waiting for Yahoo to give-up.
  • Accumulating shares

    Wouldn't that be illegal market manipulation?
    • No

      Companies buy shares of other companies every day. Do you understand the term "hostile takeover"?
    • Not at all

      It's not illegal, purchasing 51% of a company's shares gives you the controlling interest, and the most votes on the board.

      It's totally legal, and is done every day by companyies around the world. Even if they get (we'll say) 25%, they could become the single largest shareholder of the company, and have a lot more influence or control over day to day operations.
      John Zern
  • Not time to buy shares yet.

    Not when the stock price is in a slide.
    • You are expecting MSFT to drop below $28 soon?

  • Leave Yahoo alone

    I don't care about Yahoo shareholders. As a Yahoo user, I appreciate many of their services. They offer much more than the much glorified Google. But, I would have to move somewhere if Microsoft took them over. So, I hope that Microsoft just walks away.
    • I'm with you...

      ... was pondering where I would go after the takeover.
      Basic Logic
    • me too

      Yahoo is my home page, my e-mail, my discussion groups, and my main source of (non ZDnet) news. If Microsoft bought them out, I would have to move, probably to My Way. That would be a pain in the neck but I doubt Microsoft will support all of the things I like about Yahoo for very long. In addition I do not want to support the Evil Empire with my views.
  • RE: Microsoft, Yahoo meet again; Is something cooking?

    Yahoo isn't keeping up with the rest and isn't taking care of its own problems while in their "transistion" stage. Microsoft should continue the HOSTILE takeover and put an end to this mess. I use Google most of the time now to avoid the Yahoo! problems.
  • MS should withdraw their offer. Then pick up Yahoo... a year or so for less.
  • Well...

    Of course Microsoft won't walk away, Yahoo! is their only chance at getting back in the game and even then they only have a slim chance of success if they play their cards right. As to why they don't just start buying up shares, since when has a hostile takeover been a good thing? The best that can lead to is Microsoft's ownership of Yahoo! with hostile CEO relations which can only lead to the merger falling through in the end and plenty of wasted time and money. Now how is that a good idea? ;)

    - John Musbach
    John Musbach
  • Microsoft would stoop to any depths

    To stifle competition, or Embrace, Extend, and Extinguish anybody or anything for a buck. Yahoo is no exception.

    MS-EVIL: The Evil Empire (Index)

    Ole Man
  • M$ trys to eliminate Linux and Open Source with monopoly power and money

    Microsoft plays dirty to gain monopoly power in the tech industry, particularly in hardware and software, mostly in operating systems. Ever since Linux was released in 1991, MS has been trying to stop Linux from gaining popularity. They have opposed any kind of competition from others, especially open source projects which have been gaining popularity. MS alleges that the Linux kernel violates over 100 software patents held by Microsoft. MS would sue an open source project for alleged patent violation, whether or not MS actually holds the patent in question. Then they would drag the court fight out long enough to hold out until the OSS project being sued runs out of cash for legal funds. Then they settle out of court. This is exactly how M-Shaft steals software patents and ideas from the ones who actually worked to develop the software. Microsoft has sued the React OS project for alleged code piracy and patent violation. React OS is a Windows XP clone under development. It is currently in beta. The US government should break up MS like they did AT&T. All that and Vista is a crappy buggy OS that sucks and Linux is better, has better desktop eyecandy and is more secure than Vista.
  • RE: Microsoft, Yahoo meet again; Is something cooking?

    Typical of M-shaft. They shaft the whole industry by waiting for companies like Yahoo to sell their stock to them. MS is a blight and a cancer on the computer industry. Yahoo and Google are open source and M$ resents it.
  • RE: Microsoft, Yahoo meet again; Is something cooking?

    If Microsoft takes over yahoo, they will be one step closer to monopolizing the Internet like they have almost done to the operating system industry (If it was not for Linux, MS would be the only seller of PC OS's - good thing Linux is free and as easy to use as Windows)