Microsoft to Yahoo: Take Our Offer OR ELSE!

Microsoft CEO Steve Baller has given struggling Internet search engine Yahoo three weeks to accept their takeover offer of $31 a share (which was a 62% premium over Yahoo’s stock price at the time the offer was made). If Yahoo’s board of directors don’t take the offer, Ballmer threatened to take the offer direct to shareholders and/or reduce the offer:

“That action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal.”

Wow. What a bully. In his quest to catch Google he’s willing to do anything. Plus there’s no guarantee that Yahoo will help Microsoft catch Google in the search engine space. At least he didn’t throw any chairs at Jerry Yang.

UPDATE: Yahoo has responded via this press release. Note the following lines:

“we will not allow you or anyone else to acquire the company for anything less than its full value.”

And..

“We consider your threat to commence an unsolicited offer and proxy contest to displace our independent Board members to be counterproductive and inconsistent with your stated objective of a friendly transaction.”

Meanwhile, the best staff at Yahoo are e-mailing their resumes to Google as we speak.

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