Judge refuses to consolidate cases
The Department of Justice lawsuit against the proposed AT&T buyout of T-Mobile has finally received a solid schedule, with trial proceedings to officially begin on February 13. Judge Ellen Huvelle allocated six weeks for the trial, however lawyers representing both sides reportedly claimed that such a length would not prove necessary.
Buy could help company compete with Skype
Google on Thursday officially confirmed its acquisition of the VoIP company Gizmo5. Unnamed sources leaked the information earlier this week, including the alleged $30 million price tag. The startup initially had been eyed by Skype, however the deal never materialized.
Yahoo CEO to resign?
Yahoo's top executive, CEO Jerry Yang, could resign to avoid a forced departure ahead of a decisive shareholders meeting on August 1st, according to new rumors. Yang and one of Yahoo's most influential shareholders, Gordy Crawford, butted heads at a recent meeting, sources say, with the latter and his top analysts questioning Yang's arguments and demanding an update on Yahoo's near-term strategy. Crawford has expressed interest in Carl Icahn's proxy takeover for Yahoo, which would likely lead to Microsoft taking over the company.
Yahoo execs leave
Yahoo's board of directors has taken a beating after the Microsoft buyout fiasco, with many leaving their positions as the company looks to restructure its business. The Wall Street Journal writes that Jeff Weiner, Vish Makhijani, Qi Lu, Usama Fayyad, Stewart Butterfield, and Caterina Fake are among those listed who will leave the company, with some saying they are looking for better opportunities with Russian search engine Yandex, and other destinations.
Microsoft ponders takeover
Microsoft appears to be siding with a hostile takeover approach to the current Yahoo situation, an insider revealed late Thursday. According to The Wall Street Journal, Microsoft has yet to give an official word either way, but could come to a final decision tomorrow. Microsoft CEO Steve Ballmer is faced with either pursuing hostile negotiations or backing away from the deal, as Ballmer himself admits that "the right circumstances" need to be present for it to happen.
No decision on Microhoo
Microsoft head Steve Ballmer has yet to come to a decision regarding the impending Yahoo takeover, as even his closest lieutenants are left wondering what he plans to do regarding Yahoo's silence. According to The Wall Street Journal, Ballmer's threats remain stagnant due to his unpredictable nature, leaving many in the industry questioning whether he plans to follow through with replacing Yahoo's board through its investors.
DoD to contest Apple?
With little incentive to continue selling PowerPC-based chips, the US Department of Defense may plead its case against Apple following the announcement of the $278 million buyout of startup chipmaker PA Semi. The acquisition appears to be focused on the company's intellectual property and talent for reducing chip power consumption rather than its products, the report notes. Last week, the EETimes said that Apple may have to face the ire of the U.S. Department of Defense following its planned acquisition, as its customers expect Apple to end-of-life its current chips that are used in a wide variety of military devices.
Guy Kawasaki recently sat down with Microsoft CEO Steve Ballmer to talk about the Yahoo buyout offer, as well as the company's competition with Google and Apple. According to eWeek, Kawasaki wondered if Ballmer felt that Apple was like a little dog, biting at his heels that he had to kick away every day. Ballmer retorted that he did not, saying that both Apple and Microsoft do a "pretty good job", but ultimately, Microsoft has more of a "footprint" than Apple does.
Yahoo sued, court action
Two Detroit-based pension funds sued Yahoo and its board today, the latest event in the escalating Microsoft-Yahoo buyout drama. Yahoo – who shocked investors by rejecting a $44.6 billion bid from Microsoft – frustrated the Detroit Police and Fire Retirement System, and General Retirement System organizations to the point where they are threatening litigation, because it is holding out on Microsoft's astounding offer, according to Reuters.
Investors torn over MSFT
Yahoo investors are reportedly torn on the looming Microsoft buyout bid, with around 90-percent holding shares in Microsoft, most of which have significantly more invested in the latter. According to eWeek, this could mean that investors would be more likely to urge Yahoo to take a tangible incentive in addition to the bid, rather than potentially devaluing shares of Microsoft. Analysts expect that Microsoft may make its offer more interesting, potentially increasing the bid to $35 per share, over the initial $31.
Investor urges MS, Yahoo
After an ongoing civilized dispute between the two companies [1|2|3], a major Yahoo investor pleaded with Microsoft to raise its bid of $42 billion in an effort to stay the deal. In addition, the second-largest investor scorned Yahoo's pride, saying that they have few options left for a satisfactory buyout. According to Reuters, Bill Miller, the lead stock-picker for Legg Mason, assessed in a quarterly letter to investors Yahoo's true worth to be $40 per share, $9 more than Microsoft's original bid.
Microsoft responds to YHOO
In response to Yahoo's open rejection of Microsoft's proposed buyout, Microsoft issued a statement countering Yahoo's claim that the offer was undervalued. The software giant said that shareholders on both sides would benefit greatly from the merger, and that a timely transaction would be "in the best interests of all parties". Microsoft also urged investors to consider the positive side of having a combined company, highlighting an "exciting set of solutions for customers," as well as a stronger online front.