Yahoo founders Jerry Yang and David Filo
Microsoft walked from its offer to buy Yahoo! on 3rd May. After what might prove to be a short-lived 'victory' for Yahoo!, billionaire investor Carl Icahn has since then launched an effort to oust Yahoo's board.
Yahoo!'s shares were always going to tank following the withdrawal of Microsoft's offer. What has happened since has only dimmed the lights for Yahoo!'s founders. In a further escalation of the pressure of them, Microsoft released a new statement overnight.
Microsoft's Statement released Sunday 18th May
"In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.
"There of course can be no assurance that any transaction will result from these discussions."
This is becoming a fascinating exhibition of corporate maneuverings. Icahn has clearly indicated that he wants Microsoft back at the table so a deal can be struck. 'No deal, then Sack the Board'. Microsoft on the other hand can bide its time and allow the pressure to build. Its statement overnight does that.
Forget the business case. This is fascinating stuff.
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