"Our company is now moving toward a precipice," he added. "It is currently losing market share in its 'Search' function; our current Board has failed to bring in a talented and experienced CEO to replace Jerry Yang and return Jerry to his role as Chief Yahoo!, and currently it is witnessing a meaningful exodus of talent."
Microsoft first made an unsolicited offer to buy Yahoo earlier on Feb. 1 -- a $44.6 billion cash-and-stock deal that offered shareholders a 62 percent premium over Yahoo's stock price the day before of $19.18.
But 10 days later, Yahoo's board rejected that offer, saying it undervalued the company. That day, Feb. 11, Yahoo's stock closed at almost $30.
Microsoft later increased its offer to $33 per share, or about $47.5 billion, but Microsoft eventually walked away from the negotiations on May 3 after the two sides failed to agree on a price.
Since then, Microsoft officials have repeatedly said the company isn't interested in acquiring all of Yahoo. Later, Microsoft did offer to buy Yahoo's search advertising business, but those negotiations also fell through. Yahoo instead struck a more limited deal to outsource part of its search ad business to Google.
More news, commentary, and predictions from The Industry Standard:
- Prediction: Carl Icahn proxy fight to replace Yahoo's board will succeed
- Prediction: Sue Decker to become the next Yahoo! CEO
- Prediction: Jerry Yang ousted as CEO of Yahoo!
Reprinted with permission from IDG News Service. Story copyright 2008 IDG News Service Inc. All rights reserved.
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