With a possibility of a fresh deal, Microsoft Corp. has announced that it had reached out to Yahoo Inc. which will not involve an acquisition of the Internet company. Microsoft is planning to raise an alternative with Yahoo, which would involve a transaction with Yahoo but not an acquisition of all of Yahoo. The announcement comes on the heels of Yahoo shareholder and billionaire investor Carl Icahn launching a proxy fight to wrest control of the Yahoo board at the upcoming July three annual shareholders meeting.
After the two sides failed to agree on a price, Microsoft withdrew its unsolicited $33-a-share buyout bid on third May.According to Icahn, Microsoft is forcing Yahoo to return to the bargaining table with Microsoft and he wants the Yahoo board’s decision to reject Microsoft offer.Microsoft by not elaborating the new proposal said that its propose was not proposing to make a new bid to acquire all of Yahoo at this time, but was continuing to explore and pursue its options to improve and expand its online services and advertising businesses.
Microsoft wants to reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Mrosoft or with other third parties. According to the sources,Microsoft is planning partnership or joint venture for search-related advertising, the future.
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