April 30, 2008 — (WEB HOST INDUSTRY REVIEW) — After over a year of courting and three tumultuous months of negotiations, an announcement may come later today, shedding some light on the fluctuating $44.6 billion cash-and-stock deal between software giant Microsoft (microsoft.com) and Yahoo (yahoo.com), according to reports by The Register.
The deadline for Yahoo to accept Microsoft’s offer passed over the weekend on April 26, but there has been no word from either side since.
Responding to a question Monday from The Associated Press, Brad Smith, Microsoft’s general counsel, said even the key weekend deadline couldn’t bring the two sides together and no meetings have been scheduled among executives at Microsoft and Yahoo. He declined to comment on Microsoft’s next moves.
However, The Register says that Microsoft is expected to disclose its response to Yahoo’s “defiance” this week and that some blogs are predicting an announcement could come later today.
It is believed that the lack of communication is the latest sign of a rift that has developed between the two companies since a letter that was sent on April 5 by Microsoft’s CEO Steve Ballmer where he lashed out at Yahoo’s board. In this letter, Ballmer set an April 26 deadline for accepting his company’s cash-and-stock offer.
Most analysts believe Microsoft wants Yahoo badly enough to attempt a hostile takeover, which goes hand-in-hand with Ballmer’s recent threat to launch a proxy battle, “to ask shareholders to approve his own nominees for the board, who would then vote in favor of the takeover,” says The Register.
However, the outcome probably wouldn’t be settled until Yahoo’s annual shareholder meeting, which might not be held until July, according to The Associated Press.
Yahoo CEO Jerry Yang continues to insist that the offer “substantially undervalues the firm” and says the company is looking for alternatives.
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