Clock ticking between Microsoft and Yahoo!
Microsoft just released their letter to Yahoo! about their plan to acquiring the company with date line given. Due to their offer in February was rejected because underpricing the price. Now, Microsoft come with the idea to do hostile takeover from the stakeholder approach if Yahoo! didn’t accept this second offer for $41 Billion.
This pressure from Microsoft to Yahoo! will impact for their shares in the market as investor perception about this hostile takeover, where Microsoft will give a bad offer if Yahoo! rejected the offer this time. What Yahoo! can do to protect this kind of threat is by staggering their board of director, so they still have some kind of “invisible hand” for the company, which I don’t know is it any regulation that regulate about this issues in US.
What will be the questions now? Do this takeover will bring a positive impact for the two company? especially from their stockholder value? What competitive advantage will Microsoft get after acquiring Yahoo! despite their search engine and market share for their well known Yahoo!Mail? As an Investor its time to watch and see, what will happen next for this two big company will struggle for the take over impact.