Ah, this sounds like when you were a kid and you did something so bad that your parents weren’t mad, they were just “really disappointed.” Looks like Microsoft is laying down a nice little guilt trip for Yahoo! in a recent press release, saying “It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies.” It also appears that Microsoft isn’t yet ready to walk away.
MICROSOFT RESPONDS TO YAHOO! ANNOUNCEMENT
Reiterates Full and Fair Proposal for Microsoft-Yahoo! Combination
REDMOND, Wash. — Feb. 11, 2008 — Microsoft Corp. (NASDAQ:MSFT) today issued the following statement in response to the announcement by Yahoo! Inc. (NASDAQ:YHOO) that its Board of Directors has rejected Microsoft’s previously announced proposal to acquire Yahoo!:
It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties.
We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.
A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.
The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.
That last paragraph is telling. This deal may go on for quite a while longer.