Take Action Memo – Microsoft Offer is Rejected by Yahoo!
What's a Take Action Memo?
To Microsoft employees:
Yahoo! declined the generous Microsoft offer at a 62% premium.
What does this mean to customers?
Nothing. This is a big deal that will require scrutiny by the governments in Europe, Canada and the USA (if not other places around the world) which will take several months to complete. A one-week or two-week delay won't affect your advertising choices significantly yet. Hopefully once the deal is consummated and the combined company begins to execute on its strategy, it will be far more persuasive in attracting the advertising customers' budget, but that won't begin until the two are combined.
What do I say?
You can't finish a race until you start it. Microsoft took the first step with the deal announcement last week. This rejection is probably Yahoo!'s way of trying to raise the stakes. But, it sure ain't negotiating from a point of strength. Yahoo!'s stock performance says that the company is fairly valued for a lot less than the $44 billion the company offered. Be patient. More to come.
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