Yahoo! lets Microsoft takeover deadline pass

by Staff, Brand Republic 28-Apr-08, 09:00

NEW YORK - Microsoft is considering its options after the deadline it imposed on Yahoo! to enter into takeover talks passed without any action being taken.

Microsoft has threatened to make a hostile takeover bid for less money than the $44.6bn (£22.5bn) it had initially offered when it first proposed a takeover deal for Yahoo! back in January.

However, its plan to get shareholders to oust the present board at Yahoo! and install its own directors would likely lengthen the takeover process and cause bad feeling among Yahoo! staff.

Yahoo! has argued that the offer seriously undervalues the company, although it says that it is not opposed in principle to a deal with Microsoft. But while Microsoft has been pursuing a takeover, Yahoo! has unveiled a link up with Google, in a trial to offer Google AdSense ads alongside Yahoo! search results.

According to a report in the Financial Times, the weekend deadline passed without any talks between Microsoft and Yahoo!, and executives from the companies have not had discussions for several days.

It also reports that Microsoft will wait until the middle of the week to make a decision on what to do next.