Microsoft gives yahoo ultimatum on merger offer
Microsoft (MSFT) just drop a time bomb on Yahoo (YHOO). Microsoft CEO Steve Ballmer on Apr. 5 sent a letter giving Yahoo’s board three weeks before it initiates a proxy fight, including nomination of a new slate of directors likely to approve the deal.
“Microsoft’s preference has always been to offer a speedy and friendly transaction,” says a person familiar with Microsoft’s thinking, reiterating the essence of the letter. “Microsoft has tried to engage, but Yahoo’s board has refused to enter into substantive negotiations. There is a difference between a meeting and a negotiation.”
The letter comes just hours after several planted leaks by Microsoft, variously claiming that it might drop the bid, lower the bid, or, most recently, would not lower it. Clearly, those leaks (BusinessWeek.com, 4/4/08) ended up confusing people more than they clarified things, so it’s not surprising that Microsoft felt the need to go public.
It will be interesting to see how the shareholder would hold up to this incredible offer from MSFT. Either way, Yahoo is still way undervalue in my opinion as Yahoo dominate the biggest growth market in China, which we will continue to see double digit growth in the next few year as the behavior continues to grow in the Chinese online user lifestyle.
Make sure you position yourself with shares of MSFT and Yhoo as this merger will benefit both struggling internet venture against the search giant Google.
To your continual Success!
Andy Huang
