Yahoo Looks at Other Scenarios

08 February 2008

SUNNYVALE: Yahoo is reportedly mulling a number of alternative options in response to Microsoft's $44 billion (€30bn; £22bn) bid for the company last week, according to an email from ceo Jerry Yang (pictured) to employees. 

His message was his first statement since Microsoft's announcement of its bid, and came as Yahoo insiders began to voice fears over declining morale, the absence of clear leadership and the negative impact on product development.

Despite offering no further details about the alternatives, Yang said the board was "going to take the time it needs" in considering its options.

As well as citing the launch of a new service by the company's email arm, Zimbra, his email referred to  next week's Mobile World Congress as signs that the company is still moving forward. 
"No decisions have been made about Microsoft's proposal," he continued. 

"Our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape."

Investment banks Goldman Sachs and Lehman Brothers are advising Yahoo.

Data sourced from Financial Times Online; additional content by WARC staff