Most Popular
| Top Stories | Commented | Featured |
TechSpot Blog: Disable Windows automatic check for solutions after a program crashes featured
Weekend Open Forum: Google Chrome OS and the future of cloud computing featured
Tech Tip of the Week: Unearth Region-Specific Windows 7 Themes featured
Google previews its upcoming Chrome OS
Sony: PlayStation 3 to be 3D-capable via firmware update
Radeon HD 5970 supplies dry up quick, not a big surprise
Xbox Live bans prompt class action lawsuit
Mozilla reveals 2008 revenue, rumors say Firefox coming to PS3
TS Community
| User Gallery | Recent Discussion |
 Half life 2: Episode 2 by Whiffen |  front view of,Kingwin KT-436S painted by ambivolent |
 In the dark by Exonimus |  my desktop by GameJunkie72792 |
TechSpot RSSInformation Technology
Yahoo sued by own investors over MS bid rejection
Yahoo's executives worries barely began after rejecting Microsoft's $44.6 billion buyout offer. Despite Yahoo claims that such an offer undervalues the company, not everyone seems to agree, certainly not Microsoft, nor does a group of investors - namely, two Detroit pension funds - that have decided to sue the company as a way to put pressure on the board to sell and cash out on their investment.
According to the lawsuit, Yahoo has "failed" in their duties to shareholders by rejecting the offer, putting the investments of everyone in the company at risk. The lawsuit also mentions that by trying to circumvent the acquisition, the company board members are looking into "value-destructive" third-party deals, thus reinforcing their claim. They also assert that Yahoo board members are refusing the offer solely because they dislike Microsoft and seek to make the company unattractive to them. And while that may seem laughable from the standpoint of an outsider, Yahoo is just one of the many relatively young, web-based companies that strive for an integral corporate culture.
According to the lawsuit, Yahoo has "failed" in their duties to shareholders by rejecting the offer, putting the investments of everyone in the company at risk. The lawsuit also mentions that by trying to circumvent the acquisition, the company board members are looking into "value-destructive" third-party deals, thus reinforcing their claim. They also assert that Yahoo board members are refusing the offer solely because they dislike Microsoft and seek to make the company unattractive to them. And while that may seem laughable from the standpoint of an outsider, Yahoo is just one of the many relatively young, web-based companies that strive for an integral corporate culture.
Related Stories
User Comments (4)
Post a comment| icye on February 22, 2008 11:28 PM | 'Value-destructive' third-party deals is another way of saying that Microsoft's will have little or no presence in the lucrative online search/online advertising market. I have this feeling that Microsoft influenced these shareholders and are pawns in the early stages of a hostile takeover.
|
| thejedislayer on February 23, 2008 12:02 AM | Innovation at work!
|
| nathanskywalker on February 23, 2008 2:18 PM | Wow, my mind is made up; I'm never working for a corporation. :P Stupid! So Yahoo said no, their choice, stop buggin em already.
|
| Rick on February 23, 2008 5:16 PM | "So Yahoo said no, their choice" See, that's the issue - it is NOT their choice. Yahoo! is a publicly traded company and the shareholders basically 'own' it. Every big decision made by the executives at Yahoo! must take into consideration what's best for the investors/shareholders. If Yahoo! execs make a huge decision like this but cannot justify it as in the best interest for the shareholders, then they have acted illegally. If the court determines Yahoo! wasn't looking out for its shareholder's best interests (which is what makes them the most money), then these lawsuits may be upheld.Looking at it from Yahoo!'s perspective, I would think could argue that an MS takeover would ultimately destroy the company. Their argument would be based on the fact they are looking out for their long-term investors. That might be difficult to argue though, given the uncertain future Yahoo! has had in the past few years... But if they have been planning on revamping the company with some fresh ideas and stiffening the competition against other search, ad and portal giants, then Yahoo! shouldn't have any problems.
|
