Today our managing partner, Ken Marlin was quoted discussing Microsoft’s bid for Yahoo by Jessica Guynn for The Los Angeles Times.
The takeover target says the $44.6–billion unsolicited offer is too low. After being rebuffed by Yahoo Inc. today, Microsoft Corp. fired back by saying it planned to move quickly and by whatever means necessary to clinch the deal to buy the Internet company. It did not elaborate on what steps it planned to take, but called its $44.6–billion offer “full and fair.” Analysts have said Microsoft could sweeten its offer, nominate it own slate of directors to Yahoo’s board or tender the offer directly to shareholders.
Microsoft said investors, consumers and advertisers would benefit from combining the two companies, which would create a more formidable No. 2 competitor to Google Inc. in Internet search and online advertising.
“There is a clear path to a higher offer,” said Ken Marlin, managing partner of Marlin & Associates, a technology–focused investment bank. “The board knows it and is already engaged in the elaborate kabuki dance to get there. They will.”
“Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo’s shareholders are provided with the opportunity to realize the value inherent in our proposal,” Ballmer wrote.
RBC Capital Markets Internet analyst Jordan Rohan said today that the rejection was not a surprise and signaled that Yahoo was merely making a counteroffer in a highly choreographed negotiation to extract the best price for shareholders.