Microsoft To Yahoo!: “All Necessary Steps…”
Microsoft responded to Yahoo!’s rejection of the $44.6 billion offer with a letter reiterating what they mentioned before:
Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.
Below is the full statement from Microsoft:
It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties.
We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.
A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.
The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.
About 11 days ago, Microsoft an offer to buy all of Yahoo!’s shares for $31 common stock per share.Â This values the deal at $44.6 billion and a 62% premium above Yahoo!’s closing price on January 31, 2008.
What does Microsoft mean by “all necessary steps?”Â Yahoo! is a publicly traded company so Microsoft could invest in them anyway.Â Thats the only idea I can think of.
[Information Source: Microsoft PressPass]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry