Yahoo Faces 7 Lawsuits From Its Own Shareholders

February 28th, 2008 at 12:00 am
 


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As expected, Yahoo’s rejection of Microsoft’s $44.6 billion offer has resulted in lawsuits from their very own shareholders.  We did report last time that the first lawsuit filed regarding the offer was actually already the second one since the real first one was a year ago when Yahoo also turned dow Microsoft’s offer.

Today, Yahoo now has seven lawsuits to fight.  Yahoo says, "We do not believe, based on current knowledge, that any of the foregoing legal proceedings or claims are likely to have a material adverse effect on our financial position."

These lawsuits all claim that Yahoo should have taken the Microsoft offer and that there were errors in judgement on the Yahoo board’s decisions.  Of course, those who filed the suits are just out for a quick buck.

Yahoo’s declination of the bid was based on projections and long term benefits analysis.  According to Yahoo brass, Microsoft has significantly undervalued the company’s audience, advertising platform and investment holdings.

Furthermore, Yahoo calls the bid a significant distraction to Yahoo management and employees that potentially makes it difficult to do business.

[via Reuters]