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Microsoft to Yahoo!: You've got 3 weeks before we get hostile

OK, we know it's a long shot, but wouldn't it be great if Microsoft succeeded in its bid to buy Yahoo! and then renamed the company Microhoo? Because when you type "Microhoo" into Yahoo!'s search engine right now, one of the suggestions is "Microhoods." And given Microsoft CEO Steve Ballmer's recent letter to the Yahoo! Board, that seems like as accurate a description as any.

Essentially, Ballmer told the board that they've got 3 weeks to accept Microsoft's offer, currently valued at $42 billion in cash and stocks. If the board refuses, Microsoft will take the offer directly to Yahoo!'s shareholders and nominate a slate of board members to replace the current board.

The original offer was 62% higher than Yahoo!'s closing share price on January 31, one day before the offer was made. Ballmer says the goal was to facilitate a "speedy and ultimately friendly transaction." Since that hasn't happened, Ballmer indicates Microsoft might be willing to get a little less friendly, and suggests that Microsoft would drop its offer price if the company has to resort to a proxy contest.

Tags: acquisition, merger, microhoo, microhoods, microsoft, news, yahoo