Microsoft in bid to oust Yahoo board
Steve Ballmer is willing to reconsider an offer for Yahoo – but only if the board goes
Software giant Microsoft is willing to reopen talks to buy internet firm Yahoo, it said yesterday – but only if dissident investor Carl Icahn’s attempt to oust the board is successful.
Microsoft broke off negotiations to acquire the world’s second largest internet company for $47.5bn (£23bn) in May, after the two sides failed to agree a price. Steve Ballmer, Microsoft’s chief executive, felt that personal animosities within Yahoo’s board would scupper any deal.
Icahn, the billionaire who has a 4 per cent share in Yahoo, yesterday revealed he has been in frequent contact with Ballmer in recent weeks. According to Icahan, Microsoft has signalled it would be willing to start talks immediately if a new board of directors is elected at Yahoo’s stockholder meeting in August.
He is also planning to replace chief executive Jerry Yang – the man Ballmer holds personally responsible for the failed discussions, he said.
Together the two firms could give web giant Google a run for its money in the online advertising space, an industry analysts say will be worth £40bn by 2010.
Microsoft said it was too early to discuss a price, although sources close to the software giant said any offer is likely to be lower than the $34-a-share it offered in May.
“Yahoo’s independent directors and management approached Steve Ballmer about a deal recently, only to be told that Microsoft was no longer interested in the price range which they had previously proposed,” Yahoo said.