Yahoo on Monday rejected Microsoft’s takeover bid a second time as too low. Microsoft’s initial offer was valued at $31 a share. However, the declining price of Microsoft shares reduced the offer to just more than $29 a share.
The search company’s rejection came on the heels of Microsoft’s weekend letter that threatened to lower its buyout offer and take the matter straight to Yahoo shareholders, a hostile move to which Yahoo issued an aggressive response.
The latest twist in the technology drama began Saturday and looks to continue throughout the month as the battle advances to a head on April 26.
Microsoft: Sell or Else
Microsoft CEO Steve Ballmer sent what amounts to an ultimatum letter to Yahoo’s board of directors on Saturday. The letter made clear that Microsoft’s goal with making “such a generous offer” was to create the basis for a speedy and ultimately friendly transaction. Microsoft is not pleased that two months have gone by and the deal has not moved forward.
Ballmer wanted Yahoo to authorize a team to negotiate and come to a definitive agreement on a merger. Ballmer then threw down the gauntlet: a three-week deadline to come to a conclusive agreement — or else.
“It is unfortunate that by choosing not to enter into substantive negotiations with us, you have failed to give due consideration to a transaction that has tremendous benefits for Yahoo’s shareholders and employees,” Ballmer wrote. “We think it is critically important not to let this window of opportunity pass.”
Yahoo: Don’t Threaten Us!
In a lengthy joint letter, Yahoo Chairman Roy Bostock and CEO Jerry Yang reiterated the company’s initial position: The merger is not in the best interest of Yahoo or its stockholders. The duo noted the company has laid out a three-year strategic plan and continued to launch new products since Microsoft’s…