Microsoft Tells Yahoo To Stick It
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Microsoft tells Yahoo to stick it !
Microsoft told yahoo they can stick the $42.3 billion bid in the trash.
The decision to can the deal came Saturday after last-ditch efforts to negotiate a mutually acceptable sale price proved unsuccessful.
Microsoft had offered a whopping $47.5 billion, or $33 per share, up from the bid's previous value of $29.40 per share, according to a letter from Microsoft Chief Executive Steve Ballmer to Yahoo Chief Executive Jerry Yang.
But Yahoo crazy board members demanded at least $53 billion, or $37 per share, according to Ballmer. That would have been nearly double Yahoo's stock price of $19.18 at the time Microsoft first made its bid a little over three months ago.
"After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal," Ballmer said in the letter. "Clearly a deal is not to be."
Microsoftâ€™s decision to can the deal came as a surprise, given that many analysts believed Microsoft wanted to close the deal badly enough to either sweeten the offer or pursue a hostile takeover â€” a risky maneuver that would have required shareholders to replace the Yahoo board that spurned the bid.
For now, at least, Microsoft appears to believe it has enough internal weapons to chip away at Google's dominance of the booming Internet ad market.
Microsoftâ€™s decision intensifies the pressure on Yang to reverse the poor growth that has eroded Yahooâ€™s profits and depressed its stock price since 2005, making it vulnerable to an unwanted takeover.Analysts are predicting a rebellion among Yahooâ€™s restive shareholders if it looks as if Yahooâ€™s management isnâ€™t delivering on its promises.