In yet another twist in the story that is Microhoo!, Microsoft chairman Bill Gates has said that they will not raise the bid of $31 per share which they offered to buy Yahoo! just over two weeks ago.
Gates is quoted as saying “We sent them a letter and said we think that’s a fair offer. There’s nothing that’s gone on other than us stating that we think it’s a fair offer… They should take a hard look at it.” Yahoo! is believed to want at least $40 per share.
Should Yahoo! not come to the party on this offer then Microsoft’s next strategy is pretty hard-hitting. Yahoo!’s board of directors is up for nomination this year and Microsoft have stated they’ll start a proxy fight. In that, Microsoft would try to persuade Yahoo! shareholders to use their proxy votes to overthrow the board. They have until March 13th to accomplish this.
Most analysts believe Microsoft will do whatever it takes to buy Yahoo!. They have invested heavily in improving their own search engine and advertising technology, but neither Microsoft nor Yahoo! have closed the gap with Google, which dominates in U.S. search queries and related advertising revenue.
We will continue to keep you informed of any more important developments with Microhoo!