Microsoft's Ballmer Says: Announcement Coming "In Very Short Order"

Microsoft (MSFT) CEO Steve Ballmer held a Town Hall meeting with employees today, and told them that something should be disclosed soon on the status of the company’s bid for Yahoo (YHOO). According to Silicon Alley Insider, Ballmer said: “We oughta know something – we oughta announce something in very short order.” Ballmer also spent some time explaining the rationale for the deal, but said that he did not intend to overpay.

Here’s an excerpt from Ballmer’s remarks, as reported by Silicon Alley Insider:

Why buy Yahoo!?

It accelerates scale. Gets us more advertisers, gets us search. Yahoo’s not a strategy. It’s a part of a strategy. We’re interested in paying for it at some level and beyond that level we’re not willing to pay for it. I know EXACTLY what I think Yahoo is worth and I won’t go a dime above.

We missed the deadline but we’re in the process. I report nothing. I’ve got nothing to say today.

We’ve got basically the three big options in front of us. There’s the friendly deal, there’s an unfriendly deal, third path is simply to walk away. Given it’s just a part of a strategy – if neither of those look good, we walk away. It makes sense at the price we proposed and I think it’s a good deal for Yahoo shareholders. It’s a huge premium. It’s one of the largest valuations.

We oughta know something – we oughta announce something in very short order.

There’s nothing definitive to say today. We have a great plan and strategy and we have a long way to go. We are not number one and number one is a lot bigger than us. There may not be many people here that remember when we were a distant number 2 before. You gotta be willing to look outside of the box and Yahoo is $44 billion outside of our box. If Yahoo doesn’t happen there’s a number of other things we’ll look at.

Comments

[Apple at 60$:]

MICROSOFT WILL WALK AWAY IF YHOO DOES NOT TAKE THE 32-33 DOLLAR OFFER.

2008 May 01 03:42 PM

[Apple at 60$:]

I URGE THOSE YHOO SHAREHOLDERS TO SELL THEIR SHARES BEFORE ITS TOO LATE .... ITS A DANGEROUS BET AS YOU CAN SEE.. IF THE DEAL FALLS THROUGH , THERE IS NO DOUBT THE STOCK WILL PLUMMET TO TEENS.

2008 May 01 03:48 PM

[Edw216:]

Microsoft absolutely needs yahoo. Microsoft is no longer the growth company it once was. Are Microsoft shareholders happy with their stock in the 30 dollar range? Yahoo provide explosive growth opporunity. They have the most viewers on the web. With Microsoft's business accumen, this could be a marriage in heaven.

Microsoft should not walk away just to come back with a lower bid. Yahoo's directors are bent on flately opposing any take-over. If MS walks away, yahoo may seek to enact a staggard board, and then the merger will never happen.

Yahoo shareholders are in accord: 35 dollars will get the deal done.

2008 May 01 04:32 PM

[Boulderbiker:]

Just throw 'em a bone, Ballmer!

2008 May 01 04:46 PM

[.crazylegs..:]

Ballmer is showing that he is not capable of managing this process and he is nothing more than a buffoon.

2008 May 01 04:48 PM

[Tavares:]

No Mr. Ballmer is doing the right thing...There is plenty of growth in Microsoft with or without Yahoo. They have plenty of cash on hand for new development. Yahoo is no longer a stand alone company. $33 would be a sufficient offer. Yang...wake up..your run is over...bow out and take the deal.

2008 May 01 05:39 PM

[NotVerySmart2:]

Yahoo is a joke. Growth? you gotta be kidding me! They turned in the worse earning of any search company save AOL thier crappy aquisition target. They are both lossers and they will lose this one two. if you own yahoo I suggest you LIQUIDATE NOW. But Yhoo stockholders are stupid esoteric numbskulls that think thier playing a little game of "a few dollars more". Each dollar adds 1.2B to the deal idoits, at $37 (an extra 8.4 Billion dollars) MSFT just can't afford it. If your still holding Yhoo tomorrow, you deserve everything you get (which will be under $20).

2008 May 01 07:05 PM

[sf94127:]

Ballmer lost the initiative he had. MSFT is now positioned as the party in need now. This is not what I want as I have a big position in msft.
I just hope msft does not overpay for yhoo at this point.

2008 May 02 02:42 PM

[kurt walter:]

MSFT should stay away for YHOO. I don't like the idea. The price is way too high.

2008 May 02 03:54 PM