Microsoft and Yahoo! intensified on Friday (2) negotiations, in an attempt to reach a friendly agreement on the sale of the internet company. The New York Times reports that the cause of the breakthrough in conversations was a "multi-dollar" increase in Microsoft's proposal.
According to the "The Wall Street Journal", indeed business talks have advanced, but an agreement is not imminent and it is unlikely that negotiations will generate any results yet on Friday (2).
Both sides were already keeping in touch during this week, but negotiations did not advance regarding the price to be paid by Yahoo!. Although last Saturday (26) has expired the deadline set by Microsoft for the Yahoo board! accepted the initial proposal, the company was reluctant to make an offer directly to shareholders.
On Thursday night (1st), however, Microsoft gave signals that it could ignore Yahoo!'s board of directors' refusal and make the offer to shareholders. Now, sources close to the two companies indicate that there is an attempt to reach a friendly agreement.
Initially, Microsoft offered US$ 31 per share, but according to market rumors, would be willing to pay about US$ 33 per share. Great Yahoo! shareholders, however, signaled that they want a US value$ 35 to US$ 37 per share.
On Thursday (1st), Microsoft's chief executive, Steve Ballmer, told his employees that he will not pay "one more penny" than he believes Yahoo is worth! and that the next step of the company to acquire the group of internet services will be announced soon
"We have basically three major options ahead of us," Ballmer said, stressing that "there is a friendly agreement, the hostile agreement and the third path, which is simply us falling out."
Strategy
In an interview yesterday, Ballmer stated that it is confining that your company can develop a competitive business in the area of online advertising without buying Yahoo!, even if it takes longer.
According to the executive, Microsoft today has technology in the area, but does not "scale" –as number of users and advertisers. "The question is, is there a better way [that business with Yahoo!] of getting more scale quickly?", he said, according to the "WSJ".
On February 11, Yahoo's board of directors! had already officially refused the purchase offer made by Microsoft. Originally, the proposal was worth US$ 44.6 billion, but the fall in Microsoft's shares resulted in a drop in the number. For Yahoo, the proposal undervalues the company.
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