Yahoo! board actually rejected the Microsoft offer, saying it is 'too low'. They are 'not saying no at any price', but they feel this offer undervalues their investment. The current offer was at an approximate 60% premium on their share price. Wall Street Journal reports that they are looking at $40 per share price, about 109% premium. Microsoft, since they are in this, is likely to come back with an improved offer.
Businessweek quotes an analyst saying that Google will have a field day under the circumstances, taking their pick on Yahoo!'s top talent. It is an interesting comment, as this shows where modern-day technology acquisitions may actually go wrong. The M&A model is industrial-age, based on per share or Asset based valuation, rather than talent-based valuation, that it almost guarantees failure. Tom Peters made his point on talent management - why can't a business run the way a football club is run - and I guess the same should hold true for M&A activity as well.
Tuesday, February 12, 2008
Yahoo says yes, almost
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