macnn/electronista
02/19/2008, 1:40pm, EST
Tuesday, February 19thMicrosoft to wage proxy fight versus Yahoo?
Microsoft is indeed planning to pursue a "proxy war" against Yahoo management, according to reports. The New York Times cites anonymous sources close to the matter, who claim that if Yahoo does not concede to Microsoft's $44.6 billion takeover bid, it will use its influence on Yahoo shareholders to elect a Microsoft-friendly board of directors. This could be a vastly cheaper alternative to raising the value of the bid: while it would jump $1.4 billion for each dollar added to the share price, orchestrating a coup at Yahoo could cost just $20-30 million, factoring in a proxy solicitor and the cost of mailings to each shareholder.
Aiding the rumor is a new statement from Microsoft chairman Bill Gates, who tells the Associated Press that his company has not been negotiating with Yahoo. "We sent them a letter and said we think that's a fair offer. There's nothing that's gone on other than us stating that we think it's a fair offer," says Gates. "They should take a hard look at it."
Nominations for Yahoo's new board of directors end on March 13th.
Filed under: Investor, industry
Other story tags: Microsoft, Yahoo
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Doofuses.
Yep, companies do it all the time. But it also could be killed by the stockholders if they had the guts.
Does anyone actually use Yahoo for anything? I guess MS didn't get the word on that.
I would say yes, otherwise why would they be worth $44 billion, or even exist as a company. If no one used them, not only why would MS be interested, but why would Google try to block it?
If Yahoo stays independent, what exactly are they going to do to become a viable competitor to Google?
Not much hope for Yahoo either way.