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Microsoft Threatens to Go Hostile on Yahoo

Microsoft says Yahoo has three weeks to negotiate a decent deal, after which time Microsoft is going to get medieval on its ass.

The company sent out a letter to Yahoo's board, whining about how there hasn't been any meaningful progress in negotiations, and in the meantime, the equity markets are tanking.

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blog.wired.com
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decapitator3215d ago

So far I have been hearing mixed reviews about the Air. I will wait for a second gen Air before deciding to pick up one.

decapitator3214d ago (Edited 3214d ago )

Ignore the above comment, story was changed.

EDIT: I changed it by resubmitting the same story. Sorry about that.

Breakfast3214d ago

How did the story change like that? I saw the mac book air one a little while ago.

EZCheez3214d ago

This is about the fifth time I've seen you do it.

Archaeox3214d ago

I dont understand why MS wants Yahoo so badly

And what do they mean by "going hostile"

captainpwn3214d ago

Microsoft's Live Search is getting their arses handed to them by the tyrant that is Google. Microsoft is serious about their online presence and it is nearly impossible in their current state. By buying Yahoo, they would have so much brand power and advertising muscle, they would have enough to take on Google. If you're going to ask why Microsoft doesn't negotiate with Yahoo to work together, the two companies, its simple. Yahoo is also competing with Microsoft. And, Microsoft doesn't care for working with others. They want to be the proprietary solution with every product they make.

ArmrdChaos3214d ago

As in hostile takeover. If the board for Yahoo doesn't want to work a mutual deal then MS will probably try to buy the company out from under them.

EZCheez3214d ago

Before a bidder makes an offer for another company, it usually first informs that company's board of directors. If the board feels that accepting the offer serves shareholders better than rejecting it, it recommends the offer be accepted by the shareholders. A takeover is considered "hostile" if:

The board rejects the offer, but the bidder continues to pursue it, or
The bidder makes the offer without informing the board beforehand

The main consequence of a bid being considered hostile is practical rather than legal. If the board of the target cooperates, the bidder can conduct extensive due diligence into the affairs of the target company. It can find out exactly what it is taking on before it makes a commitment. But a hostile bidder knows about the target only the information that is publicly available, and so takes a greater risk. Also, banks are less willing to back hostile bids with the loans that are usually needed to finance the takeover.

In a private company, the shareholders and the board are usually the same people or closely connected with one another. So, private acquisitions are usually friendly, because if the shareholders agree to sell the company then the board is usually of the same mind or sufficiently under the orders of the shareholders to cooperate with the bidder. This point is not relevant to the UK concept of takeovers, which always involve the acquisition of a public company.

If management may not be acting in the best interest of the shareholders (or creditors, in cases of bankrupt firms), a hostile takeover allows a suitor to bypass intransigent management. In this case, this enables the shareholders to choose the option that may be best for them, rather than leaving approval solely with management. In this case, a hostile takeover may be beneficial to shareholders, which is contrary to the usual perception that a hostile takeover is "bad."

wow4u3214d ago

This isnt a hostile takeover. Wired using the word "hostile" is wrong. MS isnt doing or saying any such thing.

A hostile takeover is when company A buys company B's stock against the wishes of CompA.

What MS has said is this to the YHOO Board: "You are losers. We know the shareholders disagree. If you dont accept the offer, we're going to collect proxy-voting rights and remove you."

This is a Proxy-voting war or "proxy war". And, is a totally different thing.

Frankly, I think MS is overpaying for Yahoo and doesnt really need them, MS is simply trying to move ahead "faster" buy getting YHOOs marketshare.

+ Show (1) more replyLast reply 3214d ago
AllroundGamer3214d ago

i hope we will see a news story in the future with the title "People threatens to go hostile on Microsoft"...

wow4u3214d ago

Is this relevant commentary for the Gamer Zone? Take your mindless insults ->

LastDance3214d ago

N4g..your comments are written by no saint either. chillout.

Go get a job as a police or something. he's comment is fine.

and has a very valid opinion/comment.

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