Yet another episode of tug of war between Microsoft and Yahoo! has ended with Yahoo! having the last word, as the company rejected a fresh buyout proposal from Microsoft and Carl Icahn.
The duo has presented a joint offer, in which, Microsoft has offered to take-over Yahoo!’s search, whereas rest of the business will be handed over to Icahn.
Yahoo! has allotted less than 24 hours to respond to the joint proposal.
Yahoo! has denied splitting the board, as the company feels that the sudden ousting of the board will severely affect company’s performance.
There are questions on the financial viability of the bid, as the proposal incorporates a partnership agreement between Yahoo! and Microsoft guaranteed for next five years, according to which, Yahoo! would get 85 percent of Traffic Acquisition Costs (TAC) for the first 3 years, dropping down to 70 percent for the rest of two years, which, Yahoo! says is well below market; however, it is assured a minimum of $2.3 billion.
Yahoo! has proposed a full takeover of the whole company at $33 per share, but refused reshuffling its board; meanwhile, it has also reiterated that the new deal from Google seems to be much more lucrative for the company.
Now, a lot depends upon the proxy voting of Yahoo!’s shareholders, which is scheduled on 1 August.