Microsoft Screws Yahoo Board’s Weekend; Gives Three Weeks To Decide

Steve Ballmer, on behalf of Microsoft, has sent out a letter to Yahoo’s Board of Directors to expedite the process of making a decision giving out a three weeks notice for them to decide on the offer or face problems.

The main points mentioned in the letter by Ballmer proving that the Microsoft’s offer is a great deal for Yahoo and they should take a speedy action are:

1. The premium value of 62% on the date of offer is really high and will deliver fair value to Yahoo’s shareholders for selling their stocks.

2. The market and economic conditions have weakened making the offer a timely one for Yahoo to accept.

3. Yahoo’s search and page view shares have declined in the last two months.

It is stated in the letter that the board should make its decision in the coming three weeks failing which Microsoft will directly reach out to shareholders and might initiate a proxy contest to elect alternate slate of directors.

Here is the full copy of the Microsoft’s letter to Yahoo’s board of directors.

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Posted by Vikrant on Apr 6 2008. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry