Microsoft shakes hands with Icahn, warning bells for Yahoo!
Posted by dennisjohn on July 16, 2008
As Microsoft shake hands with Icahn, the fight to overtake Yahoo! Management control takes a new turn. What’s gonna be the consequence , the world will see in up coming days??
The zeal to apprehend Yahoo! takes a new hitch as Microsoft shakes hand with Icahn in order to topple Yahoo! board and management and to take total control over the company. Steve Anthony Ballmer, the Chief Executive Officer of Microsoft put forward the proposal on Friday evening with the non-negotiable acquisitions after making the pact with Icahn.
However, Yahoo! discarded the proposal. Roy Bostock, Chairman of Yahoo! said, “This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo!’s stockholders in mind. Clearly, Microsoft, having failed to advance in search, is aligning with the short-term objectives of Mr. Icahn to coerce Yahoo! into selling its core strategic search assets on terms that are highly advantageous to Microsoft, but disadvantageous to Yahoo! Stockholders.”
According to Bostock, Yahoo! had problems with the non-negotiable acquisitions stating, ”Replacements of top management and current board along with the overseeing of the Yahoo’s! remaining non-search businesses by Icahn’s slate of directors, would lead into a total dismantle of the company and the business. ”
Months back, Ballmer had grounded his three years desperate efforts of acquiring Yahoo! but the supremacy of Google in the online industry and the growing threat of GNU/Linux, compelled Microsoft to go for the pact. To a concern, business analysts have cited the deal as a non feasible act and suggested Microsoft to reorganize themselves, in order to be in the hunt.
