In an attempt to either upset Microsoft or their shareholders, Yahoo rejected Microsoft’s higher bid to acquire them. Microsoft responded with a veiled threat for a “hostile” takeover — which Yahoo would like to avoid.
Yahoo wants more money on a higher offer but hasn’t publicly announced the price. Microsoft offered $42 billion, but how high will Jerry Yang go before he concedes and gives in?
As much as I want Yahoo to grow and succeed, I don’t want them to compromise their services over to Microsoft. (This thought is as definite as Yahoo rejecting the offer all together.) However, their behavior with their potential new owner is very missive and gives off the wrong message, if indeed, MSFT and YHOO want to be partners and grow together.
In all actuality, Microsoft has Yahoo at the end of a Revolver. Don’t make them pull the trigger.