Practice Management

Rejected!

By chucknewton

Snap!! 

Oh no they di-ent!

Yahoo! rejects Microsoft's $44.6 billion takeover bid, stating that it undervalues the company.

The question now is whether or not Microsoft will go over the heads of Yahoo's management, and take its $31 per share offer directly to the shareholders.  This would require Microsoft to first try to oust Yahoo!'s 10-member board.  It could also try to sweeten the offer.  Analysts believe that Microsoft is willing to offer $35 per share.  Yahoo!'s downturn erased $20 billion in shareholder wealth.  Microsoft has already offered Yahoo a 62% premium above it's stock price at the time of $19.18 per share.

Microsoft had previously bid $40 per share to buy Yahoo! a year ago but was told no thank you.  Some think that Yahoo! wants to get the old bid back before agreeing to sell.  Microsoft's shareholders already do not like this deal.  It's share price has declined 12% just on the basis of the original offer.

My thought is that this deal is not good for Third Wave attorneys.  Microsoft and Yahoo!, and Google against which both are competing, represent different models.  Microsoft has a restrictive, exclusive and expensive model that places the cost of tech on the user.  Google, and to a lesser extent Yahoo!, has a better model based on an open, inclusive and FREE services and software model that places the cost of services on advertisers.  The Google model is directly responsible for driving down the cost and effectiveness of Third Wave offices.

Full post as published by Chuck Newton on February 09, 2008 (boomark / email).