© 2007 - 2011 Allan Cockerill All Rights Reserved
Microsoft announced today that it was scrapping its takeover bid for Internet pioneer, Yahoo.
The announcement was made today with the publication of a letter to the Yahoo board by Microsoft CEO Stephen Ballmer.
“We continue to believe that our proposed acquisition made sense for Microsoft, Yahoo and the market as a whole,” Mr Ballmer said in the letter, which was posted on the Microsoft website.
“Despite our best efforts, including raising our bid by roughly $US5 billion, Yahoo has not moved toward accepting our offer.”
“After careful consideration, we believe the economics demanded by Yahoo do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal,”
I guess that made my previous post very old news very quickly, but I wonder just how far away from the table Ballmer is walking?
The value of the US dollar has been falling over the past few months, and with other financial indicators about the place pointing south as well, the move to drop the bid probably makes sense.
What happens now will be anyones’ guess, but I don’t think that the Yahoo share price will continue to rise.
I presume that the focus will now shift to what action, if any, Yahoo shareholders will take now that the bid has been dropped.
Could be interesting!
© 2007 - 2011 Allan Cockerill All Rights Reserved
