Yahoo sued by own investors over MS bid rejection

By Justin Mann on
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.

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.