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Is Microsoft Re-evaluating Its $44.6BN Yahoo! Offer?
As a US recession potentially looms, Redmond begin to wonder whether $31 a share is too much for Yahoo!
By: Search News Desk
Apr. 5, 2008 06:15 AM
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"Yahoo’s key message is that they want a deal to happen but at a higher bid than
the 62% premium Microsoft originally offered. Microsoft’s key message is that the
economy has gone south since their original bid, and if they make a new offer
it’s going to be lower, not higher. Importantly, they are also threatening to
simply walk away from the deal." ![]() [from Michael Arrington's TechCrunch] The Wall Street Journal summarizes the situation as follows: "Yahoo's board rejected Microsoft's original bid in February, and Yahoo's senior
management may see no point in holding talks on the basis of that offer. Microsoft appears to be betting that the slowing economy will undercut Yahoo's performance and prompt shareholders to pressure management and the board to reconsider its offer." The Journal reports that senior executives from the two companies met during the course of the week to discuss Microsoft's proposal "but failed to resolve any of their differences, according to people familiar with the matter." The meeting apparently took place near Yahoo! headquarters in
Sunnyvale, CA, and the Journal notes that it is the second time top executives from the two companies
have met in recent weeks. Neither meeting, says the Journal's Matthew Karnitschnig, included bankers.
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