We've got some late breaking news. The Microsoft-Yahoo deal has collapsed and Microsoft is withdrawing its bid, and will not go hostile against Yahoo. The Silicon Valley Insider has
full coverage.
Microsoft (MSFT) is withdrawing its bid for Yahoo (YHOO). It will not pursue a hostile proxy battle. Microsoft raised its bid to $33. Yahoo's board wanted $37 (Jerry Yang and David Filo reportedly wanted $38.) Microsoft's release and a gracious letter from Steve Ballmer hit the wires at 7:56 ET.
Click on the article above to view Steve Ballmer's letter to Jerry Yang. Some open questions remain. First, people are wondering how much Yahoo's stock is going to drop when Monday comes, and the stock markets open. The other is, will Microsoft return again in the future to try to buy Yahoo again. Last year, there were private negotiations between Yahoo and Microsoft about a potential merger, but it went nowhere.
The New York Times has an article entitled, "
Guessing Yahoo’s Opening Stock Price.
The company managed to fend off Microsoft’s unwanted advances, even after the software giant sweetened its bid by $5 billion — an amount Yahoo felt still wasn’t enough. It’s hard not to read that sentiment into the company’s statement on Saturday, in which chief executive Jerry Yang describes the Microsoft drama as a “distraction.”
Now the Internet pioneer has preserved its independence, although it may still strike an advertising partnership with archrival Google. But Yahoo still must deal with one big question: By how much will its stock drop when the markets open on Monday?
It’s almost beyond doubt that Yahoo’s shares will fall, and possibly by a lot. [...]
Ms. Martin also had harsh words for Yahoo’s management’s “unbelievable” actions. “This is management putting its employees and its job security ahead of current Yahoo shareholders’ interest,” she told the news service. She also told Reuters that she expects several shareholders lawsuits to be filed against the company on Monday.
That last paragraph from the analyst saying it was unbelievable that Yahoo put its employees and their job security ahead of Yahoo shareholders is quite an illuminating statement. Perhaps this is why this generation will never have job security like the good old days. Profits are more important than employees and job security in the eyes of Wall Street. It's kind of a sad reality.
In either case, I am quite happy about the news. Even though the stock price will be dropping, I would much rather be working at a company that I'm proud to be a part of, then to have more money and be bought out by Microsoft. If things work out in the long-term for Yahoo, I would say that this whole Microsoft thing was good for the company. It lit a fire under the company, and it forced management to get their act together and start delivering serious results. If I compared what things are like now, and six months ago, things are way better right now. Let's hope that Wall Street gives us enough time to prove that we can turn this ship around.
I'll end this post with a video clip of Braveheart, and notions of freedom and independence. It seems fitting.
Monday is going to be a great day. It feels like we have a new lease on life.
