Microsoft & Yahoo Top Executives Have Met to Discuss MS Takeover According to an Unnamed Source

A leak from an unnamed source has indicated that Microsoft and Yahoo have officially met to discuss MS’s failed takeover bid with a view to finding an amicable way forward following MS’s apparent willingness to mount and increasingly hostile takeover campaign.

Following on from Microsoft’s much reported failed attempt at taking over Yahoo which was flatly rejected on account of Yahoo being adamant that MS’s bid of $44.6 billion (equating to around $31 per share) overly undervalued the company, is being reported today via an unnamed source that top Microsoft and Yahoo executives have met close to Yahoo’s Sunnyvale headquarters in order to discuss how they could move forward in a mutually beneficial fashion being that MS have made no qualms of the fact that they will pursue a hostile takeover of Yahoo in order to secure its acquisition – no doubt fuelled by its desire to become increasingly competitive with Google.

The talks, which apparently occurred last Monday (10/03/08) but which have not been officially confirmed (or denied) by either party are thought to have primarily focused on finding an amicable solution with MS apparently keen to sell its vision of a ‘combined future’ to Yahoo whilst Yahoo, for their part, will no doubt have been keen to press home why they believe MS’s valuation of the company falls short of their expectations.

Yahoo’s shareholders, who, in the main, were reported as being somewhat displeased that Microsoft’s initial bid was rejected by Yahoo’s board of directors will know doubt be following these unsubstanciated reports with a particularly keen eye as industry insiders are of the firm opinion that MS could be on the verge of increasing their offer in order to secure Yahoo.

Interesting, as one would expect, Google have also displayed an interest in Yahoo but its thought that antitrust regulations would make it highly unlikely that Google’s acquisition of Yahoo could prove feasible. On the other hand, AOL, who were also reported as being a potential player, having just secured the social online network Bebo for £850 million are now thought to be out of the running.

[via]