Microsoft Hands Out Three-Week Ultimatum To Yahoo!

What Microsoft wants, Microsoft gets. That’s the message that Ballmer and Co. are sending to Yahoo!. In a lengthy letter to Yahoo!’s board of directors, Microsoft has stated three things: first, it still wants Yahoo!. Second, the same offer stands, even if Yahoo! thinks it’s undervalued. Third, it’s giving the search company three weeks to respond or it will go to its shareholders.

Given these developments, we believe now is the time for our respective companies to authorize teams to sit down and negotiate a definitive agreement on a combination of our companies that will deliver superior value to our respective shareholders, creating a more efficient and competitive company that will provide greater value and service to our customers. If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board. The substantial premium reflected in our initial proposal anticipated a friendly transaction with you. If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal.

Talk about hostile, folks! You can read the letter in its entirety by clicking the source link. The whole thing reads like a very stern Sunday morning sermon minus the promise of redemption. The ball is in Yahoo!’s court, so we’ll see what the next move will be.

Source: Press Release

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