On Thursday during a meeting with staff, Microsoft CEO Steve Ballmer revealed that the company has three options available to them with regards to Yahoo, and that they would announce in “short order” which path they would decide to take. According to Ballmer, the three options available were to walk away, complete a negotiated deal, or pursue a hostile takeover.
Thus far, Yahoo has rejected Microsoft’s offer, which was initially valued at $31 per share when it was first made. Yahoo contends that the bid significantly undervalues the company, and is holding out for something in the higher 30’s.
Most recently, Ballmer began floating the idea that Microsoft might consider raising their bid to $33 per share, but even that doesn’t seem to be high enough to appease shareholders or Yahoo itself.
“I know exactly what I think Yahoo is worth to me. I won’t go a dime above, and I will go to what I think it’s worth if that gets the deal done,” Ballmer told employees.
Later on Thursday, Yahoo countered those remarks, indicating that they would announce their Google search partnership within a week.
Striking back later in the day, the WSJ reported that Microsoft was leaning towards a hostile takeover, and that an announcement was likely to come Friday.
So for anyone who has been following this epic battle, we’re still in the same spot we were last week, and the week before that. Nothing has changed. Everything is still at a standstill, and we’re waiting on either Microsoft or Yahoo to make a decisive move one way or another.
