You just have to love the news today that Microsoft is planning a proxy battle for Yahoo, just one day after Bill Gates was quoting as saying it would not raise its offer for the troubled company. The New York Times, citing "people briefed on the matter," reported that Microsoft will try to replace Yahoo's board of directors unless Yahoo enters into talks with the software giant. Though the preferred outcome for Microsoft is for Yahoo to accept its $31 a share offer, Yahoo rejected that bid, saying the company is worth more. Absent an agreement with Yahoo, the numbers are favoring an attempt by Microsoft to replace Yahoo's board with its own slate, which presumably would then vote in favor of the acquisition. A proxy battle would cost Microsoft about $20 million to $30 million, while raising Microsoft's offer of $31 a share by even $1 would cost $1.5 billion. Which when you think about it is peanuts for Microsoft. Which is why, one way or another, Microsoft will acquire Yahoo. But, always remember, you heard it here first!
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I'm gonna make you an offer you can't possibly refuse!
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