Yahoo update 2
The Wall Street Journal reports that Microsoft is unlikely to raise its offer for Yahoo, causing Yahoo shares to slump in market trading today.
Proxy fight fans must differentiate between “news reporting news” and “news being used for negotiations”. The WSJ article reads a lot like the latter.
If Yahoo is refusing to budge on their position (be it $38/share, $40/share, no sale, etc.), this release of information by Microsoft is intended to coerce Yahoo into bending toward Microsoft’s demands (be it a sweetened bid up to $32/share, $34/share, etc.).
Microsoft could likely win a proxy fight vs. Yahoo for very little cost. But it might risk alienating Yahoo employees (i.e., mental assets) in the process. Thus, talks are likely to continue.
