Microsoft Yahoo Merger Getting Ugly
After Microsoft’s weekend ultimatum that Yahoo accepts the $41 billion buyout offer or they would go to the Yahoo shareholders with a lower offer in a hostile takeover. Yahoo again tries to pull punches with Microsoft claiming the offer is to low and continues to undervalue Yahoo.
Yahoo executives need to figure out what is in the best interest of the shareholders and not themselves. Microsoft’s offer was a 61% premium over the $19 share price the company had before the offer. The company had a market value of $25 billion before the offer was made. Even after the offer, Yahoo executives have failed to find someone else to come in as a suitor at that price. Yahoo’s executives need to realize they are overvaluing the company, instead of feeling Microsoft is undervaluing it.
Tags: Acquisition, Hostile Takeover, Merger, Microsoft, Yahoo