Did you hear a really loud noise Saturday? Those of us at WebAdvantage.net let out a collective sigh of relief upon reading The Wall Street Journal’s Yahoo Board to Reject Microsoft Bid. That’s right, we’re online even on the weekends. If others sighed as we expect they did, it may just become known as the sigh heard ’round the world.
According to Mathew Karnitschnig at the WSJ, Yahoo’s board will deliver the news formally to Microsoft on Monday. The article sources a “person familiar with the situation” in this assessment of Yahoo’s anticipated response:
Yahoo’s board believes that Microsoft’s trying to take advantage of the recent weakness in the company’s share price to “steal” the company. the decision to reject the offer signals that Yahoo’s board is diggin in its heels for what could be a long takeover battle. The company is unlikely to consider any offer below $40 per share, the person said.
I’d rather see Yahoo over-taken in a hostile fight than see them folding in to Microsoft’s offer. But really the question now becomes whether Microsoft will let the issue drop, up the ante hoping to cajole Yahoo into reconsidering the offer, or risk the bad publicity sure to follow a hostile takeover.
Will Microsoft Let the Issue Drop?
It doesn’t seem likely that Microsoft will let go of the idea of conquering Yahoo one way or another. They’ve been actively pursuing agreements–and a merger with Yahoo for years.
Will Microsoft Up the Ante?
If they want Yahoo bad enough, I suspect they will. It’s also entirely possible that Yahoo’s answer is designed to entice Microsoft to sweeten the pot.
Will Microsoft Pursue a Hostile Takeover?
I wouldn’t count it out of the question. While other companies might shy away from the bad publicity sure to follow a hostile takeover, you have to remember that consumer reputation has never exactly been a high priority for the multigazillion-dollar monopoly.
As of Saturday evening at 5:00 pm, Yahoo hasn’t released a formal press release about the rebuke. Nor are there any postings on the Yahoo! Search Blog or Yodel Anecdotal. It should prove to be a very interesting week ahead.
Update: The NY Times is now covering the story as well, noting that both “Yahoo and Microsoft declined to comment Saturday.” The article, Yahoo Expected to Reject Microsoft’s Takeover Offer, went live on their site Saturday night.
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