Yahoo says it is open to value maximizing transactions
Tiny URL: http://tinyurl.com/5vgeal
Yahoo issued a statement in response to the announcement by Microsoft Corporation that it is continuing to review potential transactions with Yahoo!
Yahoo confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo! at this time. Yahoo! and its Board of Directors continue to consider a number of value maximizing strategic alternatives for Yahoo!, and we remain open to pursuing any transaction which is in the best interest of our stockholders.
Microsoft’s attempt to acquire Yahoo has been mired in drama and controversy. CEO Jerry Yang rejected Microsoft’s original $47.5 billion offer saying that it undervalues Yahoo as a company and then struck a deal with rival Google to thwart possibilities of hostile takeover. Since then, activist investor, Carl Icahn has threatened to lead a revolt to oust Yahoo’s board of directors and CEO. According to Icahn, Yahoo’s board and CEO should have accepted Microsoft’s offer.
Icahn has revealed that he has spent more than $1 billion in buying 59 million Yahoo shares and options to give him a 4.3 percent stake in the company. He also plans to seek approval from the Federal Trade Commission to acquire up to $2.5 billion in Yahoo stock, including his current holdings.
More of the drama is expected in the coming months where Icahn is expected to nominate an alternate board in the upcoming shareholder meeting on July 3rd.
In a related press release, Microsoft had the following to say - “In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.”
