Yahoo!'s First Comments on Microsoft Bid

The attempt to create a viable competitor for Google that Microsoft initiated with its $31 per share offer on Friday had everybody very excited over the weekend. Many say that the length of time until something is announced is like in court: if it's a fast jury ruling, it's in favor of the accusing side. For the current situation, that would have been the Redmond-based company.

Nobody is rushing, though, and the only response from Yahoo! was a FAQ about the unsolicited Proposal from Microsoft, to follow in full:

Q1. How is Yahoo! responding to Microsoft's proposal?
The Yahoo! Board is undertaking a deliberate review process. They're going to take time to thoroughly evaluate the proposal in the context of Yahoo!'s strategic plans. This will include evaluating all of the Company's strategic alternatives - including maintaining Yahoo! as an independent company. That process will take some time, but the Board will ultimately pursue the option that it believes can best maximize value for our shareholders.

"Q2. How long will the Board's review process take?
A review process like this is fluid, and it can take quite a bit of time.

Q3. Will the Board seek proposals from any other companies?
The Board is going to evaluate all of Yahoo!'s strategic alternatives and pursue the option that it believes can best maximize value for our shareholders.

Q4. What would a deal like this mean for Yahoo!'s users, advertisers, publishers, partners and people?
Yahoo!'s Board is going to evaluate all aspects of this proposal carefully and promptly in the context of the company's strategic plans and alternatives. So it wouldn't be appropriate to speculate about the potential benefits or challenges of a deal. But the review process that's underway won't have any impact on our efforts to deliver value to all of our users, advertisers, publishers and partners - as well as new and exciting opportunities to our employees."

The way I see it, that's to say they need more time. I would sure like to know what's going on behind closed doors, but something this big cannot just 'leak'. The one interesting detail, related to the whole deal, was that Terry Semel had quit from the board just few hours before the offer was made, after being a significant part of the Sunnyvale-based company for about 7 years. Could he have been the bastion of opposition?

It was clear that there'd be an offer, and many signs to point to it, like Microsoft saying that they'd do anything to raise their search share to about 30 percent for 2008, only possible combining its Live Search's 8-9 percent with Yahoo!'s 22 percent. Of course, the rumors have been denied or not followed by any action, but as we can see now, that was the case. More about it when further details are released.