The Wall Street Journal and other sources are reporting the executives from Microsoft and Yahoo met earlier this week at Yahoo’s headquarters to discuss Microsoft’s unsolicited $42 billion takeover bid. The meeting would mark the first time executives from the two companies have met since Microsoft announced its intentions to buy Yahoo—but the meeting wasn’t a negotiation. Instead, Microsoft presented its idea of what a combined Microsoft and Yahoo would look like.
Yahoo is known to have held meetings with other potential partners, including Time Warner and News Corp., to discuss possible partnership opportunities and ways to fend off Microsoft’s takeover attempts. Earlier this week, News Corp. head Rupert Murdoch said his company would not get into a fight with Microsoft over Yahoo.
Microsoft has announced its intentions to nominate its own slate of directors to Yahoo’s board; if approved by shareholders, those directors would then authorize a merger with Microsoft. Yahoo has extended the deadline for shareholders to nominate board candidates, giving itself more time to consider its options. Yahoo’s board formally rejected Microsoft’s takeover proposal on February 11; although the company has worked with Microsoft on isolated projects in the past, CEO Jerry Yang seems intent on keeping Yahoo independent, and the company has been actively exploring options that would let it steer clear of Microsoft. Nonetheless, some Yahoo shareholders are in favor of Microsoft’s takeover offer, and have even filed suit against Yahoo.
Microsoft has thusfar refused to raise its offer for Yahoo, which was valued at $44.6 billion at the time it was made, although changes in Microsoft’s stock prices mean the deal is currently worth about $42 billion.
