After all the speculation, it finally happened: there’s a Microsoft (MSFT) offer on the table to acquire Yahoo (YHOO) for a mix of cash and stock valued at $44.6 Billion, which is about a 62% premium to Yahoo’s current market valuation. Well.. current as of yesterday, when it closed at $19.18 – right now, pre-market it trades at $30.80, almost at the offer price of $31. (I suspect some early buyers will regret that…)
Update: Here’s the “you’ve failed” part from Steven Ballmer’s letter to the Yahoo Board, fully quoted on ZDNet:
In February 2007, I received a letter from your Chairman indicating the view of the Yahoo! Board that “now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction.” According to that letter, the principal reason for this view was the Yahoo! Board’s confidence in the “potential upside” if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment. A year has gone by, and the competitive situation has not improved.