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Decker: We Never Got $33 Offer in Writing

Posted May 06, 2008 01:23am EDT by Sarah Lacy in Investing, Internet, Newsmakers, Venture Capital, M and A, IPOs

Monday was a rough day for Yahoo, with shares plunging 15% in the wake of the weekend collapse of merger talks with Microsoft. Yahoo’s President, Sue Decker, sat down with me in San Francisco and recounted her version of events during the 3-month takeover battle. She reiterated what looks to be a key Yahoo theme: Jerry Yang & Co. never received written confirmation of Microsoft’s $33 raised bid.

This is an echo of comments made by Yahoo sources over the weekend (including those to the Wall Street Journal and CNBC). In addition, when I asked Decker which shareholders support the Board’s decision to hold firm at $37, she referred back to the original formal bid: "The work our Board did was to go around and talk to shareholders at the price Microsoft offered in writing, which was $31 a share."

Decker said that the deal wouldn't necessarily have been done at $37 a share, either. "Price was not the only factor," said Decker. But she added that the two companies never were able to address important questions around culture and vision because they couldn't get past the price.

As for shareholders and employees themselves having trouble getting past the plunge in Yahoo shares Monday, Decker urges patience. "We will deliver much more value than what was on the table," she said.

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395 Comments

robert
robert - Tuesday May 06, 2008 03:02AM EDT

We're going to hear exhausting comments from all sides of this episode that could make the Primary debates seem like a badminton game. It hardly matters now what Wall Street thinks about this deal because that's not where the monetization is going to come from at this point. Sue Decker said it right in pointing out that the market will decide what the valuation should be. However, hindsight is where it has been and while she's excited about their current tech commitments and innovations, she and the rest of the management team will be measured every single quarter about deliverance and under a larger microscope at that. Yahoo used to be a wild child sprouting up in it's growth years, but now it's growth seems stunted and it's putting on a few handlebars around it's waist, or should I have spelled that "waste."

Rick T
Rick T - Tuesday May 06, 2008 03:16AM EDT

Sue is looking frightened and weak, not like someone in charge. I suspect she is looking for her exit strategy right now. If it wasn't for Jerry buying her off with $1M bonuses she would have left already.

Brian
Brian - Tuesday May 06, 2008 03:18AM EDT

Yahoo interview, with yahoo exec, broadcast on yahoo??? nice getting your side of the story out ego freaks! ego ego ego!!! Forget any deal with google, that won't be allowed to happen. yahoo wants to buy AOL, aol is not a magic solution, just look at what time warner has lost with them in the years since buying. for yahoo to sit on their hands this long to googles dominance, they won't EVER make that ground up! Let's be real, yahoo can't even filter spam!!!!!!!!!!!!!!!!!!! i personally think ms should go to the shareholders and destroy that board. see ya at burger king decker!

john l
john l - Tuesday May 06, 2008 03:29AM EDT

No one has commented ont he fact that Pres. Sue Decker has stated that all the deal was ever really about was the money, and not the integrity or cultural factors of the Yahoo platform. Micorsoft buys Yahoo and Yahoo become Microsoft. That is a compelling thing to have on the table as negotiations unfold. I am a Yahoo shareholder, and I support Jerry Yang's decision. Most of you guys bashing Jerry Yang are probably not even shareholders.

Triss
Triss - Tuesday May 06, 2008 03:31AM EDT

MS should buy other even smaller rivals & technology. Yahoo is just another has been like aol. Hard to believe AOL once valued more then Yahoo & now most Airline companies value more. I see no way how Yahoo could partne with Google & I see no way especially now they can survive on their own. There's been no faith in the company or board or years. The stock hasn't been in te mid 20s for lie 4 & yet Yang & board wanted nearly $40 are you kidding me? Most major holds had said they wanted a deal after all most aleady have stock i MS too. Yang hasn't bought or exercised stock in Yahoo lately either it's all about board greed. Their all morons & should be fired.

Yahoo! Finance User
Yahoo! Finance User - Tuesday May 06, 2008 03:34AM EDT

The Yahoo staff must be hating david and Jerry right now. MSFT had put aside 1.5 Billon for Yahoo employees. BOO to Yang and his gang of yes men.

Amazed
Amazed - Tuesday May 06, 2008 03:43AM EDT

Yang had no trouble taking a fortune out when the company went public, but evidently either didn't care or didn't understand the fiduciary responsibility that went along with taking that money. It seems no one explained to him that Yahoo is not his toy to pick up & take home when he doesn't PERSONALLY like the playmate. Yahoo shareholders have a spoiled child losing their money for them based on Jerry's personality choices. Now there's a smart way to run a business. Jim H.

Amazed
Amazed - Tuesday May 06, 2008 03:49AM EDT

Sue Decker is as sad as Jerry Yang. Pathetic leadership of a once decent company.

cri
cri - Tuesday May 06, 2008 04:29AM EDT

I think Yahoo stockholders should have taken the money and run..and smacked Yang on the way out the door. 6 months from the stock will be trading at $8/share, and yahoo stockholders will practically beg Microsoft to buy them out. So I don't think MS is through with this yet. They need a real CEO if they are to survive..just as Semel did for them many years ago. And Sue Decker..I don't know enough about her.. They might not have the resources or the investor confidence to talk about "great things in the pipe"--those things usually require a lot of $$

FiratG
FiratG - Tuesday May 06, 2008 04:32AM EDT

I read the offer at Yahoo news and the CEO didnt know about the offer??

Robert S
Robert S - Tuesday May 06, 2008 04:37AM EDT

It is amazing how many speculative traders are posting on this forum, who have no vision farther than the next quarter's profits. The responsibility to the company which Jerry Yang has shown will be noted as a landmark decision in the future. We have been living in the Age of Greed, but we are moving into the Age of Quality. I am a technical professional, a scientist, and use Yahoo but NEVER Google, as the results are so peppered with ads and other lousy material. Do you realize that Yahoo has the ability to be even Greater than MS when we really move into the age o distributed computing? I am buying Yahoo on these short term lows. AND HOLDING LONG

Robert S
Robert S - Tuesday May 06, 2008 04:46AM EDT

Yahoo will be the operating system in the future, and you will not be running Microsoft operating systems. I actually Love Vista as I have a modern computer, not a 386 with 128Mb of RAM like the Vista bashers. But the future is not one dominated by MS. They are trying to diversify as they know these facts. The entire internet runs on Linux. When we have Internet2 in place (a true internet,not one based on the Arpanet) then we will have the speed required to have all our applications (especially for those simpletons, the 95% of computer users) running on remote servers. Our computers will be microsopic compared to today. Yahoo is the internet. MS is not forever. I also run Linux. and Sun open and free software. This is the future.

Robert S
Robert S - Tuesday May 06, 2008 04:56AM EDT

Advertisements are SO short term mentality. Yahoo will be over 100 in the future. MS is the one going down eventually. Why do you think they sell keyboards and mice and other commodities. I love Yahoo and the spirit of the Internet. Please do your due diligence and look at least 8-10 years out. China will become democratic, Chinese currency will float correctly, American companies will not be able to rely on Chinese slave labor, and America will return to manufacturing. I am not a speculator, I am a Mensa member and one who loves quality. Traders are in a sense gang rapers and are not concerned with the future. I prefer pass line bets to Stocks. Those who like stocks should pay the Slots.

Robert S
Robert S - Tuesday May 06, 2008 04:56AM EDT

Advertisements are SO short term mentality. Yahoo will be over 100 in the future. MS is the one going down eventually. Why do you think they sell keyboards and mice and other commodities. I love Yahoo and the spirit of the Internet. Please do your due diligence and look at least 8-10 years out. China will become democratic, Chinese currency will float correctly, American companies will not be able to rely on Chinese slave labor, and America will return to manufacturing. I am not a speculator, I am a Mensa member and one who loves quality. Traders are in a sense gang rapers and are not concerned with the future. I prefer pass line bets to Stocks. Those who like stocks should pay the Slots.

Yahoo! Finance User
Yahoo! Finance User - Tuesday May 06, 2008 06:36AM EDT

A combined Microsoft-Yahoo would be a mistake. Microsoft does one thing very very well - developing software. Yahoo does one thing very very well - developing web content. A merger of the two companies would add nothing of value to either. http://www.creditmanagementworld.com

Roger
Roger - Tuesday May 06, 2008 08:15AM EDT

YHOO board, Yang, etc have proven to be spineless ego-maniacs masquerading as ones that are "lookin out" for shareholders. I am one disappointed owner of YHOO. Here's the $33 offer: http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_Y/threadview?m=tm&bn=20360&tid=892383&mid=895539&tof=213&rt=2&frt=3&off=1 YHOO board - send me your resume in Jul. I've got work for you. http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_Y/threadview?m=tm&bn=20360&tid=934238&mid=934238&tof=23&frt=2

Andrew
Andrew - Tuesday May 06, 2008 08:24AM EDT

The MSFT / YHOO merger would have been a win-win for both sides. Both companies have their issues, but they could have both used their resources to combine into a much more formidable company than working alone. If you look at the internet services that both companies offer there is a lot of duplication of effort. Merging the two would have allowed them to use the best of each company that would make it a much more even rival to GOOG and iTUNES. I own shares of both companies but I'm in it for the long haul not just the short term. I see a loss for consumers more so than a loss for shareholders or board members. To take a quote from the movie Wall Street, "don't get emotional about stock...it clouds your judgement!!"

John
John - Tuesday May 06, 2008 08:35AM EDT

So, shareholders are supposed to wait for 2 years? Does the clock start ticking now, or did it start when Jerry took over- or what? In 2 years, the whole BOD will begone and broke- from all the shareholder lawsuits! These people are lost!

jim
jim - Tuesday May 06, 2008 08:36AM EDT

this stinks , what else can u say corp b.s.

G
G - Tuesday May 06, 2008 08:42AM EDT

Anyone see another class action lawsuit by disgruntled Yahoo! shareholders against the Company?

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