Yahoo says yes, almost

Yahoo! board actually rejected the Microsoft offer, saying it is 'too low'. They are 'not saying no at any price', but they feel this offer undervalues their investment. The current offer was at an approximate 60% premium on their share price. Wall Street Journal reports that they are looking at $40 per share price, about 109% premium. Microsoft, since they are in this, is likely to come back with an improved offer.

Businessweek quotes an analyst saying that Google will have a field day under the circumstances, taking their pick on Yahoo!'s top talent. It is an interesting comment, as this shows where modern-day technology acquisitions may actually go wrong. The M&A model is industrial-age, based on per share or Asset based valuation, rather than talent-based valuation, that it almost guarantees failure. Tom Peters made his point on talent management - why can't a business run the way a football club is run - and I guess the same should hold true for M&A activity as well.


Popular posts from this blog

Lord Macaulay's Speech on Indian Education: The Hoax & Some Truths

Abdicating to Taliban

India versus Bharat

The Curious Case of Helen Goddard

When Does Business Gift Become A Bribe: A Marketing Policy Perspective

The Morality of Profit

‘A World Without The Jews’: Nazi Ideology, German Imagination and The Holocaust[1]

The Road to Macaulay: Warren Hastings and Education in India

A Conversation About Kolkata in the 21st Century

The Limits of Experiential Learning

Creative Commons License