Microsoft Tightens Noose on Yahoo Board

Yahoo has three weeks to accept Microsoft’s $31 per share combined cash and stock offer or Microsoft may lower its bid and also take its offer directly to Yahoo investors, Microsoft said on Saturday.

Microsoft’s CEO Steve Ballmer said in a letter addressed to Yahoo’s board of directors that “now is the time” to negotiate final terms of a deal.

“If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors,” Ballmer wrote.

Then he threatened to reduce Microsoft’s offer if Yahoo failed to meet the deadline: “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.”

Source: Reuters

The acquisition appears almost inevitable at this stage.