February 23rd, 2008, 01:02 AM #1
Yahoo Sued for Spurning MicrosoftTwo Detroit pension funds have sued Yahoo Inc. and its board of directors, saying they breached their duties to shareholders in trying to thwart a takeover by Microsoft Corp.
The lawsuit was filed in Delaware Chancery Court on Thursday by lawyers representing Detroit's police and fire retirement system and general retirement system, as well as "all other similarly situated public shareholders."
According to the lawsuit, Yahoo's board is pursuing "value-destructive" third-party deals in an effort to fight off Redmond, Wash.-based Microsoft, which on Feb. 1 announced a takeover bid of $31 per share in cash and stock, a 62 percent premium over Yahoo's previous day's closing price.
Now this is getting interesting. I knew Yahoo not accepting the price would bite them in the ass, but I never thought their own share holders would start it!
I can imagine the outcome...Microsoft buys out Yahoo for 50% of what their initial offer was in the end."The problem with quotations on the internet is that the sources are hard to verify" - Abraham Lincoln
February 23rd, 2008, 01:13 AM #2
Good for the stockholders. I'd be pissed if someone offered 62% more for my stock than it was worth and the company turned the offer down. I can't even see where that's legal. A publicly traded company is legally bound to act in the best interest of its stockholders.You can't fix stupidity.
February 23rd, 2008, 02:23 AM #3
Wow, this is getting like the RJR/Nabisco takeover in the 80's. Very hostile, and the lower bid ended up winning,
February 23rd, 2008, 02:57 AM #4
But is a buyout always in the best interests?
February 23rd, 2008, 04:02 AM #5
Not for anybody that uses the internet/Yahoo in this case. Not sure what would happen if Microsoft did take over, but it would limit internet users to one less web search engine that isn't affiliated with Microsoft. Microsoft then takes on Google with it's own products on the web such as Excel, Powerpoint, Word...etc.
But this whole deal is f'ed up because a lot of stock owners have investments in both Yahoo, and Microsoft. So lets get rich both ways...MS takes over Yahoo...Yahoo stock double, and MS stocks go up in price. MS buys back shares, and the shareholders are very happy. Yahoo ceases to exist, and now we have a choice of Google, or MS. That's it folks the internet as we knew just went to s***. MS wanted the world...they got it.
Last edited by outlaw2001it; February 23rd, 2008 at 06:37 AM.
February 23rd, 2008, 02:26 PM #6
Microsoft, Google, and Yahoo are NOT the only ones available. Why do you have to act like this is the end of the friggin world outlaw?
Taking over Yahoo is about as important as conquering some remote desolate island nobody has heard of before. Yahoo hasn't brought something decent to the world in years."The problem with quotations on the internet is that the sources are hard to verify" - Abraham Lincoln
February 23rd, 2008, 04:25 PM #7
I know there are others. Besides I don't see the deal going through. Either the U.S., or Europe (most likely Europe) will block the deal.
February 23rd, 2008, 05:14 PM #8
You think that Microsoft would have spent any time with this if they knew somebody would block the deal?"The problem with quotations on the internet is that the sources are hard to verify" - Abraham Lincoln
February 23rd, 2008, 05:19 PM #9
- Join Date
- Oct 2001
the three major players right now in the search world for the US are google, MS (can't stand their indexers) and Yahoo.
MS can't beat them, so they do a hostile takeover and now they have the marketshare of MS and Yahoo.
yahoo is also the most visited site in the world
not bad for a company that offers nothing...
February 23rd, 2008, 05:31 PM #10
Couldn't said it better. Yes MS would spend money on it even if they knew the deal wouldn't go through...it's call taking a chance. Who knows the deal might go through...at this time MS is a losing company. They have nothing outside of their OS's, and office software. None of their other crap they came out like their Zune player, has done that great in sales to what they were hoping for. They are on their last leg...they have a Crap full of money, but don't can't do anything with it. Everybody is coming up with innovations except them (Google/Apple). Their once glorified empire is slowly crumbling.
Last edited by outlaw2001it; February 23rd, 2008 at 05:39 PM.
February 23rd, 2008, 06:53 PM #11
I really do not think you understand how businesses work, especially large businesses.
February 23rd, 2008, 09:58 PM #12
Innovation...they haven't brought out anything new compared to Google/Apple in how long. Google is coming out with more innovative ways to make the web interesting while MS is struggling to hold on to what they have, thus the reason for the hostile takeover on Yahoo. They said they wouldn't never do a hostile takeover...well guess what they have, and are doing it. They have $100 Billion that they can't doing anything with. They can't compete with Google, so they are eliminating what they can to get after them. Ms can't even keep their employees, everybody is leaving to go elsewhere, and the ones that they have now don't seem to be as good when it comes to innovating. When it comes business these days MS is behind the power curve when it comes to innovation. Vista was not innovation...Vista is a glorified XP (let's not get into a pissing contest over it...it's not what it was supposed to be, and MS has stated that).
Now as for the Yahoo deal...is the bid too low? IMO Yes. Did they have a right to reject the offer? Oh yeah. Is this lawsuit going to go through? It might. Will they shareholders win? No. You're a shareholder, you invest into a company for whatever reason, and it's up to the guys running it to do their jobs. Their investment is like playing poker, you have a good hand/band hand. If it's good you stay in, if it's bad you get out. Just because your looking for a little dough right now does not mean it's in the best interest of the company, and this is what the problem is. If these pension funds want to buyout some of the Yahoo execs (for a crap load of money), and takeover they can do that. Then they can run the company, have a say on the Board of Directors, and merge with MS. Everybody seems very lawsuit happy these days, it's incredible. We'll just have to see how this plays out.
Last edited by outlaw2001it; February 23rd, 2008 at 10:05 PM.
February 23rd, 2008, 10:04 PM #13
You have some proof showing people are flatly leaving Microsoft because they don't like them or are you just throwing BS?
You have to be a mental case to think the bid was too low for Yahoo. They were paying 62% MORE than the companies stocks were worth? How the hell is any company worth 62% more than their stocks?
February 23rd, 2008, 10:12 PM #14
Do I have proof of people leaving, haven't you been reading the news all these years of employees leaving MS to go work for other places, or start something on their own? If MS is buying it, the price is too low...because I know they want something more out of it. If Yahoo stays right where they are, and continue to innovate it will put MS in a more worried task of competing with Google, and the internet.
February 23rd, 2008, 10:31 PM #15
- Join Date
- Oct 2001
I also highly disagree that MS is crumbling
If you've ever seen the server side of the house of enterprises you'll also find that MS is very strong.
MS Exchange runs on a good portion of the gov't not to mention SQL server etc etc.
MS Exchange 2007 brings in integration with VOIP (Live Communication), and now offers off site clustering (ie geoclustering) for disaster recovery situations.
SQL server brought this functionality in SQL 2005
This is a huge deal for gov't offices after 9/11
3rd party utilities allowed it on Ex2k3 previously, but now 2k7 offers a similar functionality natively.
Yes I know from experience, I have no links
February 24th, 2008, 12:25 AM #16
I don't mean that they are crumbling as for going out of business, but they are behind the power curve (drastically) compared to other companies. I know they run most software for the government that's what we mostly ran while I was in the Navy. I just don't understand the shareholders suing though...that doesn't make any sense. I by stock in a company, and the company doesn't do well I can sue them. That's what the hedge funds/stock market are all about taking chances...hopefully you win.
February 24th, 2008, 12:59 AM #17
I'm not worried about MS taking over yahoo, wait and see what happens if the Dem's get in to office, they will tax everything on the net, good buy new egg, than when the local governments starts going wireless like there doing here, the feds will regulate it by using fed funding for the service, so me and you will be paying the feds for internet service, regulation regulation and still more regulation, tax everything you buy or sell on the net,
February 24th, 2008, 01:08 AM #18
regulation regulation and still more regulation, tax everything you buy or sell on the net,
- Join Date
- Jan 2003
- Outside the box
- Blog Entries
Outlaw, I'm not certain why you don't see the issue the shareholders have. They had a chance to make a killing on their stocks. Who wouldn't want that? Thats the point of buying stocks, making money. They are claiming the board is fighting just to stay in power and not doing right by the "shareholders/public". If they block it long term the shareholders have a greater chance at loosing money, or not making as much.
February 24th, 2008, 02:39 AM #19
- Join Date
- Jan 2005
- Loveland, CO
- Blog Entries
February 24th, 2008, 05:38 AM #20
Last edited by outlaw2001it; February 24th, 2008 at 08:43 AM.
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
By outlaw2001it in forum General Tech DiscussionReplies: 8Last Post: February 9th, 2008, 03:07 PM
By pickel in forum DebateIMO: Politics, Religion, ControversyReplies: 3Last Post: January 28th, 2008, 02:54 PM
By outlaw2001it in forum General Tech DiscussionReplies: 6Last Post: May 5th, 2007, 10:09 AM
By d1sc g0lf3r in forum Graphics Cards and DisplaysReplies: 26Last Post: April 24th, 2003, 06:08 PM
By brazeal in forum Technical SupportReplies: 7Last Post: October 18th, 2002, 07:30 PM