Monday, July 14, 2008

Microsoft is very keen on acquring Yahoo

Microsoft tried their very best to acquire Yahoo! since January 31st, 2008. Finally, they backed off because Yahoo’s current board was not happy with the offer. In a fresh press release, Microsoft has announced that they are interested in reinitiating talks with Yahoo, "if" a new board is elected.

This announcement came as a response to Investor Carl Icahn’s letter to Yahoo! shareholders, in which he speaks about the talks he had with Microsoft, and why Microsoft withdrew their offer. He wrote:

"Microsoft would be guaranteeing a great deal of capital at closing. However, a transaction could take at least nine months, and perhaps longer, to obtain regulatory clearance in the U.S., Europe, and elsewhere.

During that period, if the current board and management team of Yahoo mismanage the company (and their recent track record is far from reassuring), Microsoft would be putting its money at risk, and a great deal could be lost"

Yahoo’s annual shareholders meeting will be held on August 1st. If a new board gets elected, something is definitely going to happen. It maybe a full or a partial acquisition, but it’s likely to happen! Let’s keep our fingers crossed until then.

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