Yahoo to accept Microsoft deal
( dpa ) - The Yahoo board of directors was scheduled Friday to hold a special meeting to decide on Microsoft's buyout offer, with a majority in favour of the deal, technology site Techcrunch reported.
The report said that outside advisors to the board have recommended accepting the deal since no alternative bidders for the company are likely to emerge. But a contingent of senior executives at Yahoo still favour an alliance with Google that would allow Yahoo to remain more independent.
However, analysts say that even though a pact with Google could yield short term results, the long term implications would be disastrous for the company.
Microsoft made the unsolicited bid for Yahoo late last week, proposing a price of 31 dollars a share in a stock-cash deal. However, since the price of Microsoft shares fell following the announcement of the offer, the current price is around 28.87 per share, for a total deal value of 42 billion dollars, the report said.
Earlier in the week Microsoft chief executive Steve Ballmer upped the pressure on Yahoo to move quickly to accept what he called a "generous offer."
"We trust the Yahoo board and the Yahoo shareholders will join with us quickly in deciding to move down an integrated path," Ballmer said.
Microsoft also revealed that it might borrow money for the first time in its history to finance the deal, rather than use up its entire 21 billion dollar cash pile in the cash-stock offering.
Ballmer's comments came after Yahoo insisted that it may take "quite a bit of time" to weigh its strategic options.
On Wednesday Yahoo CEO Jerry Yang said that the company was "evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape."