Yahoo! may have begun to accept the probability of a Microsoft merger by holding talks with the company late last week. As reported by the Wall Street Journal and C-Net, the companies met last Monday to discuss Microsoft’s takeover offer for the company.
The meeting was a breakthrough in discussions between the two companies who have been in a stalemate following Yahoo’s rejection of the offer last month. Microsoft’s $44.6 billion dollar offer represented a 62% premium on Yahoo! shares at the time but was rejected by Yahoo! because the offer “substantially undervalued the company”.
According to the Wall Street Journal, the meeting was designed to allow Microsoft to present their vision for the company and Yahoo! members simply listened. No bankers attended the meeting and it is not clear whether the CEO’s of each company were present.
Either way, the meeting represents a positive step in the relationship between the two companies. It’s also a smart move by Yahoo, who need to fulfill their investor obligations to seriously consider the offer. Only time will tell the outcome here but the signs look good for Microsoft.