Microsoft's Yahoo chase - Biggest Tech News Of 2008

[VelMurugan]

Microsoft's Yahoo chase

The year 2008 began with the software giant Microsoft proposing a $31 per share buyout to Yahoo. However, the bid was rejected by Yahoo board of directors saying it "substantially undervalues" the company. On its part, Yahoo announced an expensive severance package which made any acquisition attempt more expensive.

In May, Microsoft revised its offer to $33 a share, which was again rejected by Yahoo. This was followed by speculations that Microsoft may go for a forced deal with the company talking tough.

Yahoo reportedly tried exploring alternative deals with News Corp, Google and Time Warner unit AOL. The chief executive Jerry Yang kept waiting for the software giant to offer a better price than $47.5 billion for Yahoo. However, it never happened. Instead, Yahoo's stock started to fell and hit nearly five-year lows. Yahoo's plan 2, an advertising deal with Google too failed, after Google pulled out fearing a court battle with the US Justice Department.

In November, Yang stepped down and Yahoo, in December, overhauled its severance plan apparently hiked to discourage Microsoft's acquisition plans.

Source : IndiaTimes