Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times reporter Sharon Chan.

E-mail Sharon| Subscribe | Blog Home| Brier Dudley's Blog

April 30, 2008 1:47 PM

WSJ: Microsoft board meeting now on Yahoo, companies still separated by price

Posted by Benjamin J. Romano

The Wall Street Journal's anonymous sources say Microsoft's board of directors is meeting now to weigh its next step in the Yahoo takeover drama. An announcement is expected at the conclusion of the meeting. Someone familiar with the matter told us earlier today that the situation is still undetermined.

According to the Journal's sources:

-- The two companies are divided on price, with Microsoft perhaps willing to raise its offer to $32 or $33 a share, while major Yahoo shareholders and the company's leadership want a price in the high $30 range.

-- Microsoft has been heavily lobbying major Yahoo shareholders, with the personal involvement of CEO Steve Ballmer and Alan Schwartz, the CEO of Bear Stearns, brought in as a special adviser on the deal.

-- Yahoo continues to pursue a deal with Time Warner's AOL. Time Warner announced today it's spinning off its cable business.

-- The Microsoft board is waiting to hear Ballmer's recommendation. The Microsoft boss, in his eighth year commanding the company, is facing the most important decision of his career. "The Microsoft CEO has appeared to both favor raising his bid price for Yahoo and walking way from the deal together, say people familiar with his thinking," the Journal reports.

-- The Journal's story in today's paper said Microsoft was weighing whether to unveil a slate of candidates to replace Yahoo's board of directors in what would be the first salvo of a hostile takeover.

Recall that the deadline Microsoft set for Yahoo to make progress toward an agreement passed this weekend. Microsoft CFO Chris Liddell said last Thursday the company was considering its options, including a hostile takeover and dropping the deal, and would "provide updates as appropriate next week."

Update, 7:20: The Journal posted another story this evening saying Microsoft's board meeting has concluded without reaching a final decision.

Digg | Newsvine

Submit a comment

Posted by WM

5:18 PM, Apr 30, 2008

I sincerely hope that Google enjoys the randomization that Microsoft is providing for them. In the end, if it proceeds, the acquisition of Yahoo by Microsoft will, I believe, be toxic for both companies, and yet another notch in Google's strength. It's a horrible idea. Microsoft has shown themselves repeatedly unable to integrate technology from acquisitions - rarely are they able to even integrate in outsiders as senior management. I'm no Yahoo fan, actually - but I think this is a bad move for both companies, and a great move in Google's favor.

Posted by MiddleAgeMan

7:33 PM, Apr 30, 2008

If MS is such a great company, why don't they start their own "Yahoo" portal and be done with this awkward and time consuming dance?

Posted by Microhoo

8:19 PM, Apr 30, 2008

Walk away, Steve - walk away!! Leave that Yahoo turd on the ground and do something better with your company. Surprise us all - go delight some customers, produce some really great software, games and technology that starts to change the world. And if you can do something about that stock price so that some of us can get rich again - heaven knows with this economy we need it

Posted by TryingToHelp

8:39 PM, Apr 30, 2008

Don't do it MS! The Yahoo bid is overpriced. Yahoo is dying a slow death anyways. With the 40 or 44 billion you'll spend on acquiring yahoo you can get MySpace and the controlling interest in Facebook and have plenty of money left over for other investments.

Posted by PacificGatePost

12:05 AM, May 01, 2008

AOL is not Yahoo's salvation by any means, and Yahoo isn't Microsoft's salvation....

http://pacificgatepost .blogspot.com/2008/04/microsoft-yahoo-and-rest-of-us.html

IMHO, Yang should get some new advisors. Really new advisors, not more egocentric goofs, of which he has plenty. Then look for some enlightened strategies ... demonstrate just a little creativity... not panic driven reactions.

…. And Google wins.