Hey, Yahoo: Get Ready for Microsoft's Revenge

The Valley Bigwig who brought you Microsoft’s “Godfather-style coup“–a Yahoo-deal alternative in which Redmond knocks off the heads of the five familes (Facebook, Slide, Rock You, Salesforce.com, NetSuite, etc.) instead of buying Yahoo and still has $10 billion left over–weighs in with another idea.

With this new plan, the Bigwig says, Microsoft can kill two birds with one stone: appease its shareholders, who are angry about the high price Redmond’s paying, and punish Yahoo for its unreceptive and ungrateful attitude:

msft drags heals til april 7 when y announces q1 which shd suck bigtime. Pulls bid. Stock to teens. Then returns at 25 w teeth. Funds wd move fast to accept

Got that? Microsoft goes about its business until early April–nominating its slate of board members, preparing for a hostile shareholder meeting–and then, just after Yahoo reports a horrendous first quarter, pulls its offer for the company. Yahoo’s stock collapses, costing shareholders 40% overnight. Jerry & Co. are pummelled with shareholder complaints and lawsuits, and Yahoo’s employee and shareholder morale hit all-time low. Then, just when all hope seems lost, Microsoft comes charging back and saves the day with a $25 bid, and Yahoo owners flatten Jerry & Co. in a stampede to tender their shares.

(Kara Swisher offers a variant of this idea: a simple reduction of the bid in retaliation for the self-enriching company-wide severance plan Yahoo adopted at Microsoft’s expense.)

See Also:
Microsoft’s Yahoo Alternative: A Godfather-Style Coup
SAI’s Microsoft-Yahoo Bid Calculator


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