There are so many different ways of looking at the ongoing (non) negotiations between Yahoo and Microsoft. Judging by the letters that went back and forth this weekend, you’d think it was a conversation going on between two arguing parents: “You can tell your Mother, that my offer to take her to Wendy’s for dinner, is fair and final.”
Instead, I think it’s more appropriate if we look at the antics as some kind of “dowry” negotiation. When you boil it all down, it’s as simple as this.
Microsoft: “By any fair measure, the large premium we offered in January is even more significant today. We believe that the majority of your shareholders share this assessment, even after reviewing your public disclosures relating to your future prospects.”
Translation: No one else in the village wants you, but we’ll take a chance and maintain our dowry of 3 pigs–even though you’ve chipped a tooth since we made this offer.
Yahoo: “We are open to all alternatives that maximize stockholder value. To be clear, this includes a transaction with Microsoft if it represents a price that fully recognizes the value of Yahoo! on a standalone basis and to Microsoft, is superior to our other alternatives, and provides certainty of value and certainty of closing.”
Translation: We are worth 4 pigs (and maybe a chicken) and you insult as by offering only 3 pigs (one with a crooked leg).
So the public game of brinkmanship continues. As we suspected earlier, Yahoo is indeed waiving around AMP as a sign it has big plans this year. Meanwhile, Microsoft is reiterating its threat of a proxy fight, if Yahoo doesn’t come to the table within 3 weeks.
Now a question you probably never thought you’d find yourself answering: how many pigs do you think Yahoo is worth?