Yahoo is floundering in the face of getting what I think is more-than-fair price to be acquired.
First, it says the price is too low and floats an 'acceptable' price. Microsoft does not counter offer.
Second, it tries to explore other possible avenues to see if it can get a reasonably competitive offer. It does not get anyone to make an offer anywhere close to the Microsoft offer.
Third, it tries to find creative ways to combine pieces of TimeWarner (AOL), NewsCorp (MySpace) and perhaps others that may not be publicly disclosed to show its shareholders that its value is much more than what Microsoft offered. Nothing remotely close in terms of a viable business model.
Fourth, Yahoo has mended its bylaws to extend the deadline for nominating new board members. It is afraid that the shareholder--who have already started filing law suits--may accept Microsoft's point of view.
I--for one--believes that Microsoft offered a fair (may be bordering on excessive) price to acquire Yahoo. In this industry--more that anywhere else--timing is critical. If Microsoft-Yahoo as a combined entity is to be competitive against Google, it must act fast. Real fast. Post-merger integration will not be easy--it is not about combining factories and supply chains to gain economies of scale in production. It is about combining smart talent and R&D proficiency to reap economies-of-expertise in delivering software-enabled services in a new marketplace. Protracted delays will diminish the potential synergies of the combined entity and dilute the value to yahoo shareholders--who will receive part of the purchase price in Microsoft stock. So, it is better to figure a way to make it happen or both should walk away from the deal. Nuanced boardroom games will hurt both and only help Google to march ahead.
So Yahoo--Why are you kicking the gift horse in its mouth? I am not saying that this is best for Microsoft but for Yahoo shareholders, this is a sweet, sweet offer.