Everyday we wake up looking for those headlines saying ‘Micro-hoo’ or ‘Yaho-soft’ or something equally asinine. So why hasn’t it happened yet?
Everyone knows that Yahoo is sucking big time right now. Leave it to Yahoo to be the world’s most used search engine and still be considered a failing company that needs to be bought out. And Microsoft, they’re one of the biggest tech bullies on the block (although a little diminished in recent years due to multiple nuggies from Google and MySpace).
Why aren’t we reading about some slick hostile takeover procedure all over the frontpages instead of being forced to watch the current proceedings which mimic two uninterested pandas trying to mate in captivity.
CNBC says just give it some time, baby. These two ungainly lovebirds will make it happen over the weekend. With Microsoft offering a higher (but still not as high as ‘Yah wanted) takeover big, the heat is intensifying.
Adam Lashinsky of Fortune Magazine explains why the ‘Soft-serve hasn’t gone hostile yet:
Yahoo is a consumer company, and many of its shares are held by retail investors, perhaps as much as 25%. Retail investors almost never vote in proxy contests… So for the sake of argument, remove that 25% from the vote count. Now that 37% of Yahoo [executive ownership] all of a sudden becomes 49% of the votes outstanding… Team Yahoo wouldnÃ¢â‚¬â„¢t have to work all that hard to block a deal anywhere south of, say, $36 a share, while Team Microsoft has a huge task ahead of it to find enough votes to win.
There are a lot of stipulations in that little scenario, but if that’s all Microsoft needs to hear to talk themselves out of going hostile, then I guess it makes sense.
Should Yahoo and Microsoft just get this deal over with already? How about just for the sake of not hearing about it anymore? Let us know in the comments section.
CNBC: Microsoft Raises Yahoo Bid As Merger Talks Heat Up, May 2, 2008
CNN Money/Fortune Magazine: Why Microsoft hasn’t gone hostile, May 2, 2008
CNN Money: Eyeing Weekend Deal, May 2, 2008