4/7/2008 10:08:00 AM
Microsoft gives Yahoo! an ultimatum in takeover bid
Microsoft has given Yahoo! three weeks to accept its takeover offer, after which the software giant says it might lower its bid and take its offer to Yahoo! investors.
Steve Ballmer, Microsoft CEO, said in a letter sent to Yahoo!’s board during the weekend that now was the time to negotiate the final deal.
The takeover could be the biggest in the history of the technology sector, at £20 bn. Microsoft has offered to pay £15.50 per share.
Yahoo! first received the offer from Microsoft in February, and has since waited for a ‘white knight’ to emerge, but talks with other potential acquirers, News Corp and AOL, haven’t been successful.
Since the initial bid, Yahoo! has continued to lose advertising market share to rival Google.