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February 15, 2008 7:55 AM PST

Report: Yahoo board divided over Microsoft bid

Posted by Ina Fried

Microsoft's billions appear to have Yahoo's board divided, according to a report Friday in the New York Post.

On Monday, Yahoo sent out a press release stating that the board had "unanimously" rejected the bid.

But some of the company's independent directors apparently don't detect a solid alternative to selling to Redmond and see CEO Jerry Yang as taking an "emotional" anything-but-Microsoft approach.

In one camp are Yahoo Chairman Ray Bostock and billionaire investor Ron Burkle, according to the newspaper, while Yang appears to have support from Softbank's Eric Hippeau and Activision CEO Robert Kotick.

"The emotional part of Yang would rather do anything but sell to Microsoft, but he doesn't have the cards to come up with a value-creating, competitive alternative for shareholders," an unnamed source told the Post.

Yang's approach is also said to have some independent directors worried about lawsuits that they are not doing their fiduciary duty by negotiating with Microsoft.

It's worth noting that in Yahoo's press release on Monday, the company stated that its independent directors have obtained separate legal advisers from the company's overall counsel.

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Add a Comment (Log in or register) 7 comments (Page 1 of 1)
This is why Yahoo is where it is
by n3td3v February 15, 2008 9:02 AM PST
The Yahoo board are incompetent to make key business decisions and agree to them. Its why Yahoo got to where it is now. Yahoo is rotten to the core. There is top to bottom mismanagement at Yahoo Inc. The entire Yahoo board need to be sacked and Yahoo needs to be taken into administration before the company isn't even worth taking over by Microsoft, News Corp or anyone. Its not in Yahoo's interest to hang on too long, they need to pick someone to take over the company. For sure the current board couldn't organise a ****-up in a brewery. It would be laughable if it wasn't such a big company and thousands of jobs at stake. The Yahoo board is a disaster, Yahoo Inc is a disaster, the delay in decision making is a disaster. The whole sitiation is a disaster.
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Look at the history of Microsoft Acquisitions...
by Jonathan February 15, 2008 9:12 AM PST
That is all you need to know why this is a fundamentally retarded idea. MS is like someone who is inexperienced with filleting a fish...The end result is both gruesome and is full of all kinds of waste (To the former employees)
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That's Exactly What I Said Earlier This Week
by WJeansonne February 15, 2008 10:03 AM PST
Yang is a technogeek turned "businessman" that is immature to say the least. I truly believe he doesn't think he has to answer to Wall Street. For some weird reason, I believe he thinks he company is still private and he can do with it as he pleases. He's not the only owner and by far!!
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The Twisted Reality
by Renegade Knight February 15, 2008 10:30 AM PST
Word on the street is that Yahoo sucks. Meanwhile companies want to buy Yahoo. Meaning Yahoo doesn't suck in spite of the word on the street. If the bits and pieces that MS will get out of Yahoo are worth MS's time and money, then Yahoo itself is worth more as a company than whatever utiltiy MS will get out of tearing them apart. The one lesson from the 80's break up kings. Breaking up companies like MS will do more for sharholder value than for MS to keep assimilating companies and create negative shareholder returns. It doesn't hurt the consumer either. If Windows Inc. one of the Baby MicroSofts, had to live or die by Vista, Vista would be one heck of a lot better operating system.
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Take The Money And Run....
by Commander_Spock February 15, 2008 10:41 AM PST
... "Guys" - before it it too late. The MSFT "Tsuname Wave (like the Russians and the Chinese are) Is Coming!
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  • About Beyond Binary

  • During her seven years at CNET News.com, Ina Fried has changed beats several times, changed genders once and covered both of the Pirates of Silicon Valley. These days most of her attention is focused on Microsoft.


    Beyond Binary is a look at how technology is changing our lives and the people behind all that life-changing stuff, with an extra emphasis on that which emanates from Redmond, Wash.

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