Techcrunch is reporting that Yahoo has scheduled a special board of directors meeting for today in order to decide how to deal with the bid from Microsoft. The offer of $31/share is not being challenged by anybody, leaving Yahoo to decide between a Microsoft buy-out and a partnering with Google.
The board, we’ve heard, is basically being told by outside advisors to take the Microsoft deal. But we’ve also heard that a contingent of senior executives at Yahoo, who are willing to do literally anything to thwart a Microsoft takeover, are pushing for the Google deal and will present their case at the meeting.
The partnership with Google would essentially mean Yahoo outsources all of it’s search operations to Google. This would result in an influx of cash for Yahoo, but would mean the lay off of thousands of Yahoo employees who work in search. Also, over time, Yahoo traffic would decline. After all, if a user can search Google whether or not they are on Yahoo or Google, why not just go to Google?
I don’t really think Yahoo is going to partner with Google. And with no competing offer to Microsoft’s, expect that Yahoo is indeed going to be purchased by Redmond. My guess is that Yahoo is going to attempt to get a little more money out of Microsoft. This will be a delaying tactic, plus an effort to just get every bit they can.
Yahoo is legally obligated to operate in the best interests of it’s shareholders. The stock price of Yahoo was around $19 last week and they’re being offered $31 per share. Yahoo simply cannot legally get out of this one.
Say hello to MicroHoo.
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