Microsoft pulls its Yahoo offer
Microsoft pulls its Yahoo offer - via Scoble, who described it thus: “Yahoo is a bleeding animal. Left lying, gasping for its breath, after a larger animal (Microsoft) struck and then walked away after it proved too difficult to eat.”
May 4th, 2008 at 6:14 pm
Wow, what a visual description. Kind of sucks though, I wanted to see Yahoo in the hands of yahoo. Just think of the implications.
May 5th, 2008 at 6:42 pm
Corporate Governance - The Board of Directors is supposed to be working for the shareholders. So, let’s look at the Yahoo versus Microsoft deal.
This past Saturday, Microsoft pulled it’s offer to buy Yahoo off of the table. As of this morning, Yahoo’s stock was down $6.00/share.
At the time of the offer, Yahoo was trading at about $19/share. Microsoft’s offer was $31/share and Yahoo’s stock jumped immediately. However, Yahoo’s board said the company was worth and demanded $37/share.
The Board said they were working for the shareholder and wouldn’t sell the company for cheap. As of now, Yahoo didn’t get $37/share, didn’t get $31/share and as of this morning was $22/share.
So, did the board do the right thing in turning down Microsoft’s offer?
If you were a shareholder, how would you feel?