So much has already been said and speculated about Yahoo!’s rejection of Microsoft’s $44.6 billion offer that it would be screaming in the echo chamber to add my analysis and prognostications about the offer and its rebuff. Except I can’t help making one (hopefully) original observation: This episode may be the best thing to happen to Yahoo! and its employees in a very long time.
When the proposed deal was announced 11 days ago, I wrote – assuming Yahoo! to be a willing recipient of the offer – that getting the deal past regulators would be a challenge and one that could demoralize an already struggling Yahoo!
Now, Yahoo!’s decision to reject the offer could have the opposite affect on the company and it’s employees.
After careful evaluation, the Board believes that Microsoft’s proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments.
Roughly translated: “Microsoft is out of its friggin’ mind if it thinks for a minute we’re some kind of cheap date.”
And therein lies the motivation. Nothing energizes an organization and galvanizes employees quite like righteous indignation. Now, Yahoo! has something to prove, damn it!
Sure, Yahoo! left the door ajar for counter offers and other “strategic options,” but the Microsoft bid – and its rejection – might be the best thing to happen to Yahoo! in a very long time.