Chuan Microsoft Will Launch A Proxy Competition For YAHOO.

Beijing time on February 19th, according to foreign media reports, sources recently revealed that in order to successfully acquire YAHOO, Microsoft may launch a proxy fight, which means that the "battle" between the two major technology giants will be upgraded again.

Earlier this month, Microsoft announced that it had submitted a bid to YAHOO's board of directors, hoping to purchase all of its shares with cash and stock of $31 a share.

According to Microsoft's share price, the total value of the paction was $44 billion 600 million.

YAHOO's board of directors formally rejected Microsoft's bid on Monday, saying the price "underestimated YAHOO's value".

Microsoft responded in a statement that the offer was fair and reasonable, but the next plan was not announced.

Analysts expect that in the current situation, Microsoft may raise the offer for takeover, or it may launch a proxy fight to try to control YAHOO's board of directors.

In comparison, the latter option costs much less.

If Microsoft is to launch a proxy fight, it may cost US $20 million to $30 million for lawyers and other expenses.

But if the bid is raised, Microsoft and its shareholders will have to spend about $1 billion 400 million on the offer even if they raise only $1 per share.

Since the announcement of its bid for YAHOO, Microsoft has made it clear that in order to successfully acquire YAHOO, the company will take all necessary measures.

There is no doubt that Microsoft's acquisition of YAHOO is to narrow the gap between Google and the main competitor in the Internet search and advertising market, which is the most lucrative area of the Internet industry.

In the past two weeks, Microsoft's share price has fallen by 12.8%, and the value of YAHOO's acquisition has shrunk to around 41 billion dollars.

After YAHOO's board rejected Microsoft's offer, many analysts speculated that Microsoft might raise its offer, for example, to $35 per share.

Some people even think that Microsoft may raise its price to more than 40 dollars per share.

Many YAHOO investors, including Legg Mason, the second largest shareholder of YAHOO, Bill Miller Bill Miller, have made it clear that Microsoft must raise the offer.

But for now, Microsoft is unlikely to raise the offer.

Bill Gate, chairman of Microsoft's board of directors, said in a foreign media interview on Monday: "we have written to YAHOO, indicating that we think the offer is reasonable" Bill Gates.

In addition to the fair and reasonable offer, we will not raise the offer.

YAHOO should consider this plan carefully. "

So far, no other company has submitted a bid to YAHOO.

Without competing rivals, Microsoft naturally gained the upper hand in the takeover battle.

Although the battle for proxy competition will generate a lot of expenses, it will surely be less than the cost of raising the bid price.

On the other hand, if Microsoft starts the battle of proxy, YAHOO's board will be hard to resist.

Unlike many other companies, YAHOO's board of directors is not stable.

That is to say, in the next shareholders' meeting, all members of YAHOO board will be re elected.

This provides an opportunity for Microsoft to nominate candidates for YAHOO directors and strive for control.

Of course, if Microsoft carries out hostile takeovers, there will also be some risks.

In this case, YAHOO's future will be more confusing, so many important executives and employees may choose to leave.

In addition, in order to win the battle for proxy, Microsoft will need at least four months to extend the trading cycle.

You know, even if Microsoft and YAHOO reach a takeover agreement, the paction will need to be examined by the regulatory authorities, which will take several months.

During this period, Google will further expand its lead.