"Discussions with Microsoft regarding a potential transaction -- whether for an acquisition of all of Yahoo! or a partial acquisition -- have concluded."Yahoo added that there were numerous meetings with Microsoft and the software giant indicated that it wasn't interested in the company "even at the price range it had previously suggested." Think $31 to $33 a share.
The company added:
With respect to an acquisition of Yahoo!'s search business alone that Microsoft had proposed, Yahoo!'s Board of Directors has determined, after careful evaluation, that such a transaction would not be consistent with the company's view of the converging search and display marketplaces, would leave the company without an independent search business that it views as critical to its strategic future and would not be in the best interests of Yahoo! stockholders.Yahoo reiterated that it is focused on maximizing shareholder valueâ€"a point Wall Street isn't buying.
"In the weeks since Microsoft withdrew its offer to acquire Yahoo!, the two companies have continued to discuss an alternative transaction that Microsoft believes would have delivered in excess of $33 per share to the Yahoo! shareholders. This partnership would ensure healthy competition in the marketplace, providing greater choice and innovation for advertisers, publishers and consumers.As a sidebar Yahoo plans a reorganization after the departure of Jeff Weiner, the executive vice president who runs Yahoo's network division.
"As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!. Our alternative transaction remains available for discussion."
The Google search dealâ€"and Yahoo's penchant for itâ€"has accomplished the following for better or worse:
- Yahoo's financial picture improves since Google's search provides better monetization;
- Microsoft goes away;
- Icahn, who has been penning love letters to Yahoo chairman Roy Bostock via the SEC, goes away because his only real plan was to ditch the Yahoo board and sell the company to Microsoft.
Wall Street was shooting Yahoo and asking questions later as shares fell more than 10 percent to $23.50 or so. Here's what happens when your biggest suitor calls it quitsâ€"again.
- Icahn miffed at Yahoo response; Has Google envy too
- Why Internet companies are attractive takeover targets: They can't manage
- Icahn on Yahoo: I'd hire a 'talented and experienced' CEO
- Carl and Yahoo's dueling banjo routine gets old