Yahoo has rejected
another move by Microsoft to buy its main search engine
business, and has suggested Redmond instead put up enough cash to
buy the whole company if it's that keen on an acquisition.
Yahoo has rejected a joint proposal from Microsoft and
activist Yahoo investor Carl Icahn for a complex restructuring
of Yahoo, that would include the acquisition of Yahoo's search
business by Microsoft.
Yahoo is already in the process of restructuring its business
and has recently signed a search engine advertising deal with
Google. Both moves followed Microsoft's recent failed bid to buy
the company.
The latest proposal was made on Friday evening (11 July) and
Yahoo was given less than 24 hours to accept the proposal. Yahoo
said, "the fundamental terms of which Microsoft and Mr Icahn made
clear they were unwilling to negotiate."
Yahoo said the Google search engine deal offered better value to
the firm for that part of the business, and that Friday's offer
would preclude any future sale of Yahoo as a complete business.
The deal would have also led to the current board being replaced
and the leading executives being shown the door, which Yahoo said
would have destabilised the business.
Yahoo chairman Roy Bostock said, "This odd and opportunistic
alliance of Microsoft and Carl Icahn has anything but the interests
of Yahoo's stockholders in mind.
"Clearly, Microsoft, having failed to advance in search, is
aligning with the short-term objectives of Mr Icahn to coerce Yahoo
into selling its core strategic search assets on terms that are
highly advantageous to Microsoft, but disadvantageous to Yahoo
stockholders."
Yahoo said a transaction to acquire the whole company would be
much more straightforward and involve far less risk than the new
proposal or any similar alternative.
Yahoo said a complete acquisition could still be negotiated and
executed prior to its 1 August shareholder meeting. Yahoo will
still sell if Redmond comes up with $33 per share, a price
Microsoft previously rejected.
Yahoo knocks back Microsft and partners with Google
Microsoft will not take no for an answer on Yahoo