Microsoft CEO Steve Ballmer reportedly sent Yahoo’s board a letter today, a few days after Microsoft’s second go-nowhere meeting with Yahoo since it publicized its $44.6 billion stock-and-cash bid for the company over two months ago.
The move should deep six dearly held notions that Microsoft will raise its bid.
The letter laments Yahoo’s refusal to negotiate and suggests to the Yahoo board that Microsoft might cut its offer.
For all its attempts with Google, AOL and News Corp Yahoo has failed to come up with a white knight.
The Journal, which has a copy of the letter, said that it said that “If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact in the value of your company from our perspective which will be reflected in the terms of our proposal.”
The paper figures that Microsoft figures that Yahoo’s major shareholders will go along with it.
The letter dangles the prospect of the economic slowdown and its repercussions in front of the board and claims that it has reduced Yahoo’s market value. Microsoft’s $31-a-share offer represented a 62% premium when it was made on January 31.
Yahoo rejected the offer as undervalued