Microsoft gives Yahoo 3 weeks to accept buyout

Shakil published 06 Apr 2008, 16:30 in main - 382 views

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Microsoft Chief Executive Steve Ballmer on Saturday gave Yahoo three weeks to accept his offer - or he'd launch a hostile takeover of the Silicon Valley company.

And if there's no deal by April 26, Ballmer warned, Microsoft may cut its offering price of $31 a share.

"It has now been more than two months since we made our proposal to acquire Yahoo at a 62 percent premium to its closing price on January 31, 2008, the day prior to our announcement," Ballmer wrote in a letter to Yahoo's board.

"Our goal in making such a generous offer was to create the basis for a speedy and ultimately friendly transaction. Despite this, the pace of the last two months has been anything but speedy."

While the Yahoo board stalled, he wrote, the value of the Sunnyvale Internet company declined along with a falling stock market and weakening economy. He also noted that data from independent market research firms and other indicators suggest Yahoo's share of Internet search queries and page views has fallen.

"By any fair measure, the large premium we offered in January is even more significant today. We believe that the majority of your shareholders share this assessment," Ballmer said.

News source: Mercury News

Tags: Microsoft, Yahoo, Ballmer

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