Microsoft Replies to Yahoo’s Rejection

February 14th, 2008 at 12:00 am
 


The Microsoft-Yahoo transaction that was supposed to be one of the major acquisitions for the year did not push through after a week of Microsoft’s offer.  Under the circumstances, the decision was up to Yahoo and they made it last weekend behind closed doors which was leaked of course but officially released on Monday.

The whole fiasco can be compared to a failed marriage proposal (in light of Valentine’s day).  Microsoft is the guy trying to woo a hesistant bride  into marriage with the promise of security, wealth and prosperity ’til death do they part.  However, Yahoo being the country bumpkin making it in the big city thought that she was a modern independent woamn and did not meed a man, politely turned down the proposal.  Microsoft on the other hand after baring his hear to the whole world and finally being rejected, had to make a graceful exit and show everybody that he’ll get over it somehow, issued a statement.

REDMOND, Wash. – Feb. 11, 2008 – Microsoft Corp. (NASDAQ:MSFT) today issued the following statement in response to the announcement by Yahoo! Inc. (NASDAQ:YHOO) that its Board of Directors has rejected Microsoft’s previously announced proposal to acquire Yahoo!:

It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties.

We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.

A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.

The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

Oh well, so much for the love story.  It would make a rather compelling movie to watch though, a certified chick flick.