Yahoo shareholders seem to be increasingly frustrated that Yahoo’s board hasn’t taken Microsoft’s offer. Last week, the Police
and Fire Retirement System of the City of Detroit sued Yahoo, claiming the Sunnyvale, California-based company is “pursuing all manner of value-destructive third party deals” while resisting Microsoft, reports Bloomberg . Other large shareholders are also speaking out as they have watched Yahoo shares decline in value on top of the company’s declining revenues. Yahoo has posted eight straight quarters of declining profit in the wake of Google’s continue rising dominance, Bloomberg reports. Many shareholders say they do not see how an independent Yahoo would compete against Google and would rather take Microsoft’s payout.
Meanwhile, a Microsoft executive mimicked the tactic used by Yahoo CEO Jerry Yang by sending out an e-mail to Microsoft employees on Friday about the potential acquisition of Yahoo. The e-mail discussed how the integration of Yahoo would take place, according to a story posted, ironically enough, on Yahoo News. The e-mail didn’t say much that everyone doesn’t already know, but the hinted that a hostile takeover might be next. It was sent by Microsoft platform and services division president Kevin Johnson who said it was intended to give employees “a perspective of the process going forward.” The story quotes the e-mail as saying:
“We look forward to a constructive dialog with Yahoo’s board, management, shareholders, and employees on the value of this combination and its strategic and financial merits,” Johnson wrote. “Once Yahoo and Microsoft agree on a transaction, we can begin the integration planning process in parallel with the regulatory review.”
If Yahoo’s board doesn’t see the light soon, a hostile takeover of Yahoo is looking ever more likely.
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