Reading the tea leaves with Yahoo
In a well-publicized letter to Yahoo’s board this weekend, Microsoft announced that it will continue its path toward a hostile proxy fight if Yahoo’s board continues its path in forestalling negotiations.
Sounds like Yahoo’s board has been too busy negotiating with suitors other than Microsoft.
The Wall Street Journal reports that talks between Yahoo and Time Warner “have heated up recently.” Other talks are rumored to include News Corp.
As depicted in the so-so movie Pirates of Silicon Valley, Microsoft still faces the dilemma of being viewed as the Orwellian big brother. This fact is hard to underestimate, particularly when viewed in line with the typical psyche of a company about to be acquired.
Yahoo’s management and board will continue to fight Microsoft for this very reason. The only remaining question is whether Yahoo shareholders feel the same way.
If Yahoo shareholders do, in fact, feel animosity toward Microsoft, Yahoo will feel more confident walking into a proxy fight. If, however, Yahoo shareholders seek to maximize their financial gain, look for Yahoo to strike a deal with another partner prior to its annual shareholder meeting
Yang Calls and Raises Ballmer…
In response to Microsoft’s (MSFT) letter with a three-week deadline to act on Microsoft’s buyout offer, Yahoo’s (YHOO) CEO, Jerry Yang, insisted that Ballmer & Company raise its offer. Yang states that his company is not against …