Is Yahoo a Takeover Target?
With Yahoo's recent financial struggles, it is reported that the Internet company may be forced to entertain bids for selling the company and one of the reported bidders is competitor and rival, AOL. The Wall Street Journal asserts negotiations have commenced because Yahoo's financial performance has suffered over the past few years and even with bringing in three different CEOs, the outcome has been the same - disappointing.
In 2008, Microsoft Corporation made a bid in buying Yahoo for $47.5 billion. Microsoft withdrew its final offer in 2008 of $33 per share before Yahoo could accept or reject the proposal. This time, the buyout seems inevitable. Shareholders are tired of losing value of their once highly valued stock and may concede that a buyout is the best and last option in stopping the skid. To find out more about the aritcle visit, Report: AOL, buyout firms mulling bid for Yahoo.
A buyout of a corporation, in most cases, requires a voting majority of the Boards of Directors and shareholder approval from both companies. Once the sale/purchase is approved, the company sells an agreed upon number of shares to the buying company. If it is a buyout, then the buying company would need to own at least a majority of the overall authorized shares of the selling company. By owning a majority of the company, the new owner(s) can replace Directors, officers and other corporate officials and can begin operating the company as it sees fit.
These agreements can be very complex. If you have a question about a business sale or purchase, you should seek an experienced business attorney.
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