Microsoft To Yahoo: You've Got 3 Weeks

Letter Sets April 26 Deadline For Moving Forward On Microsoft's $40B Buyout Offer

(AP)  Microsoft Corp. sent a letter to the Yahoo Board of Directors Saturday setting a three-week deadline for moving forward on its more than $40 billion buyout offer.

The letter signed by Microsoft CEO Steve Ballmer said Microsoft will take its case directly to Yahoo shareholders and work to elect a new slate of directors, if the board doesn't respond by the deadline by April 26.

The bid to buy Yahoo was made in January and announced Feb. 1.

At the time, Microsoft offered $44.6 billion, or 62 percent above Yahoo's market value. The deal is currently valued at about $41 billion, based on Friday's closing share prices.

Yahoo's board formally rejected Microsoft Corp.'s bid, saying it undervalues the company.

The Silicon Valley company has since explored alliances with Google Inc., News Corp.'s MySpace.com and Time Warner Inc.'s AOL, but no alternative to Microsoft's offer has surfaced.

Ballmer acknowledged these alternative negotiations in the letter and questioned why the company is not negotiating with Microsoft.

"This is despite the fact that our proposal is the only alternative put forward that offers your shareholders full and fair value for their shares," Ballmer wrote in the letter. "During these two months of inactivity, the Internet has continued to march on, while the public equity markets and overall economic conditions have weakened considerably."

Ballmer said the Microsoft offer has grown stronger as the time has passed.

"We believe that the majority of your shareholders share this assessment," he wrote.

Yahoo and Microsoft both lost less than 1 percent of their share of U.S. Web searches in February, the most recent month for which data are available, according to the research group comScore. During that month, Yahoo grabbed 21.6 percent of searches, more than Microsoft's 9.6 percent. Google Inc.'s share rose less than 1 point to 59.2 percent.

In the intervening weeks, Yahoo released internal projects drawn up in December that call for the company's revenue to rise more than 70 percent during the next three years.

The Web company also postponed its annual shareholder meeting, and thus the deadline for Microsoft to nominate its own slate of directors to fill Yahoo's board. A new date has not been set.

[Marie Zarankevich]

I absolutely adore Yahoo exactly the way it is, and I would be willing to pay Yahoo some money for their service rather than have them sell and have it all changed. I''m sure I''m not the only person who feels that way. Yahoo has been ''There'' for us for a long time. Thanks Yahoo.

[ranger1948]

thegateway1
Just ignore Jumkey, he just admitted how dumb and tricial he is. No rspect for someone of a different opinion.

[sevenveils]

Microsoft has been trying to figure that internet thing since the early 1990s. It began elbowing Netscape out of business by using its influence with computer manufacturers and by trying to head to head compete with AOL with MSN. Microsoft has figured out how to make an attractive web portal. Only recently MS developed a search engine, but it still needs lots of work. Its instant messaging tool is all but forgotten. It''s recent launch of its newest Web Portal, Live, has not caught the attention of users.

Microsoft''s solution: If it can''t develop a product, or compete with its own weak solution set, it will go out and strong arm a leading company into its fold.

[dan_shields-2009]

I say Microsoft is a bully. Yahoo doesnt want to sell so Microsoft back off! We all know you''re scared ******** by Google and you''ll be nothing without Yahoos help. Microsoft is a corrupt company, monopoly and controlling more than it should! Jerry Yang is proud of what he started and built with his own 2 hands and is not about to sell it to the biggest corporation in the world which is also a mess itself. Yahoo is struggling yes, but every company does, look at Pepsi they went bankrupt 3 times! and are now one of the richest and well known companies in the world, give Yahoo a *** chance. I back up all Mr. Yangs Microsoft-avoiding-decisions 100%

[bgwinnett]

Microsoft, keep your cash and lend it to the bank''s instead at say 100% interest. I think they''ll agree to borrow even at that rate, let''s face it they are insolvent.

[hypnotoad72]

Those are some mighty big numbers alright, are you absolutely sure you are not getting "Bear "Stearns-ed", or "Enron-ed", or "World Com-ed", or "Country-widened"?

Posted by brianbwb
-------------------

If I might intercede, given Microsoft''s desire for unlimited H1Bs, I would believe their profit margin claims. What this says for current product quality, I honestly do not know, but others have made some inferences. So did I but I''m trying to think of other perspectives. Can''t say the same for those others. :)

[brianbwb-2009]

"Profit Margin (ttm): 29.29%
Return on Assets (ttm): 22.03%
Return on Equity (ttm): 47.72%
Revenue (ttm): 57.90B dollars
Market Cap (intraday)5: 271.39B dollars
Levered Free Cash Flow (ttm): 13.89B dollars..." Posted by TheGateway1

Those are some mighty big numbers alright, are you absolutely sure you are not getting "Bear "Stearns-ed", or "Enron-ed", or "World Com-ed", or "Country-widened"?

[brianbwb-2009]

Posted by TheGateway1

By the way, I forgot to mention that I am an A+, and MCSE certified tech, with years of on the ground experience with MS and its'' customers. I make a decent bit of change restoring their no longer functional computers and networks to their former pre-Vista stste, so while you quote the numbers, I base my opinion on what I see in the real world, not the Wall St. view, which, barring government bailouts, sooner or later collides with reality.

[brianbwb-2009]

"May I suggest to you (once again) that you do a little research before embarrassing yourself here again."
Posted by TheGateway1

Funny that you choose for a sig the name of a computer company that is just one of many that recently decided to offer a choice of Vista, or the older XP OS for its'' computers, instead of the usual practice of bundling just the latest OS, Windows Vista, because so many users complained about compatibility problems with Vista, and were "upgrading" to an older OS, Win XP.

I might add that this was the first time in the history of M$ (or any OS company, for that matter)that so many people rejected its'' newer OS.

I will give you credit for the numbers in your post, but will remind you of the caveat in most ads for financial investment products; "past performance is not a guarantee of future performance".

The anti monopoly forces in Europe (and beginning to rumble in Asia) are dark clouds on MS'' horizon, not to ignore growing customer dissatisfaction in the US, ignore them at your own risk, at least the company whose name forms part of your sig knows better.

[termtex01]

"No one would be happier about Yahoo!''''s take-over than Google. Given Microsoft''''s penchant for spectacular software failures lately (witness Vista), Googlers can be sure that Yahoo will sink even further into mediocrity under M$ ownership, as it will come hard-wired into the buggiest, most bloated, and least popular OS version in history.

Posted by brianbwb at 12:55 AM : Apr 06, 2008"

Oh, and you forgot to mention Microsoft''s net value:

Profit Margin (ttm): 29.29%
Return on Assets (ttm): 22.03%
Return on Equity (ttm): 47.72%
Revenue (ttm): 57.90B dollars
Market Cap (intraday)5: 271.39B dollars
Levered Free Cash Flow (ttm): 13.89B dollars

Yep, looks like a bunch of losers to me.

May I suggest to you (once again) that you do a little research before embarrassing yourself here again.