Microsoft failed to make the acquisition deal with Yahoo on Saturday. This has resulted in Microsoft to decide if it wishes to takeover Yahoo on a hostile way through a proxy fight or to bid and seek other alternatives.
Though Microsoft had been informing Yahoo through various means that they would pursue acquiring Yahoo using all available options, Yahoo has been ignoring Microsoft’s threats.
Microsoft CFO Chris Liddell stated on Thursday that, “Unless we make progress with Yahoo towards an agreement by this weekend, we will reconsider our alternatives. We will provide updates as appropriate next week, these alternatives clearly including taking an offer to the Yahoo shareholders, or to withdraw our proposal and focus on other opportunities, both organic and inorganic”
However, critics say that launching a proxy fight against Microsoft would just prolong the acquisition process and make the deal nastier. This would also result in various post-acquisition internal transfer issues.
During February 1st, when Microsoft announced the bid on Yahoo, the stock price immediately started to increase from the last bid of $19.18. Yahoo also started laying of more than 1000 employees including familiar executives like Bradley Horowitz who was then the Vice President of Product Strategy