updated 01:25 am EDT, Fri May 2, 2008
Microsoft ponders takeover
Microsoft appears to be siding with a hostile takeover approach to the current Yahoo situation, an insider revealed late Thursday. According to The Wall Street Journal, Microsoft has yet to give an official word either way, but could come to a final decision tomorrow. Microsoft CEO Steve Ballmer is faced with either pursuing hostile negotiations or backing away from the deal, as Ballmer himself admits that "the right circumstances" need to be present for it to happen.
Ballmer admits Microsoft could create its own ad revenue service without Yahoo, but that the process would be expedited if the acquisition goes through.
Microsoft's original bid - now valued at $29.48 per share - could be increased to $33 per share, although many officials and major Yahoo shareholders are pushing for a figure in the mid to high $30s.
Yahoo has made several measures to "poison the well", such as deals with Google and AOL, while a hostile takeover could result in many employees leaving in protest.
Ballmer's rationale for the deal is that Yahoo's technology would compliment Microsoft's installed user base, and could cause for exponential success for both companies.