Bill Gates to Yahoo: Take it or Leave it.

February 19th, 2008 at 12:00 am
 


Bill Gates

This story has been such an earthquake.  Ever since Microsoft unsolicitedly offered to purchase Yahoo for $44.6 Billion, this story has evolved, died down and after Yahoo declined, you’d think that that was the end of it.  But of course, like any strong earthquake, shockwaves of this story are being felt even 3 weeks after it all began.

Yahoo already declined to Microsoft’s offer stating explicitly that they have been undervalued and  implicitly "give us a better offer!"  However, Microsoft did not increase their offer and responded to Yahoo’s declination letter quickly.  That should have been the end of it.  Of course, no good story hasn’t got a sequel, or an afterparty.  When all was said and done, little stories following the whole Microsoft fiasco have been popping up.

In an interview with Reuters,  Bill Gates tells us that Microsoft will not be increasing their offer. Moreover, Microsoft will continue with their strategy of taking on the web (read g-o-o-g-l-e) with or without Yahoo. "We can afford to make big investments in the engineering and marketing that needs to get done. We will do that with or without Yahoo," Gates says.

Furthermore, Gates also confirmed that whatever their strategy was, it would have been faster with Yahoo on board, "But we also see that we’d get there faster if the great engineering work that Yahoo has done and the great engineers there were part of the common effort."

Analysts were speculating that Microsoft would have increased their offer from $31 to $35 per share to finalize the deal but Redmond simply implied in their letter, "We think our initial offer was fair, take it or leave it."

Gates is now part time with the company he co-founded, Microsoft, and will be retiring in June to concentrate on his charity foundation.  He will remain on the board of trustees.