It’s Now Official: Microsoft Vows to Fight for Yahoo Buyout

(NewsVisual, powered by IntellectSpace) -- As the media reported that Yahoo was preparing for layoffs, Microsoft Corp (NASDAQ:MSFT) officially responded to the rejection of its $44.6 billion bid by Yahoo! Inc’s (NASDAQ:YHOO) Board of Directors and vowed to continue its efforts by taking the buyout offer directly to Yahoo’s shareholders.

Microsoft’s response came in the form of a press release posted on its website.

“It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies,” the statement says.

The company suggests that it’s already begun to lay the groundwork for a shareholder fight by suggesting that it’s been in contact with some of the parties:

“Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties,” the statement says.

Microsoft also adheres to its claim that the takeover will benefit Yahoo, saying:

“A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.”

Microsoft’s self-confident tone could be undergirded by an awareness of Yahoo’s financial difficulties.  For example, The Wall Street Journal reported on Tuesday that Yahoo plans to deliver 1,000 lay-off notices to its employees (see The Journal article by Kevin J Delaney).

Microsoft’s share price was up from the previous close of $28.21 to $28.50 in mid-morning trading on Tuesday (10:16am ET).

Given the stakes involved for the company’s long-term strategic position, NewsVisual created an IntellectSpace Knowledge Map that illustrates the business connections among Microsoft’s Board for Directors in order to determine whether they are prepared to meet the company’s potential legal and public relations challenges as a result of the company’s ongoing bid for Yahoo.

The Knowledge Map shows that Microsoft’s Board is extremely diverse in terms of the number of different industries represented.

For example, besides the software and computer industries, Microsoft Directors have experience in several other industries: Director Dina Dublon is the former CFO of JPMorgan Chase; Director Raymond Martin is the former Chairman/President/CEO Merck & Co; Director Reed Martin is the Founder/Chairman/CEO of Netflix; and Director Charles Noski is the former Vice-Chairman of AT&T Corp.

This corporate diversity demonstrates some of the reasons why it has been able to maintain it position as the largest software company in the world.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

Click here or copy this link into your Internet Explorer browser for an interactive version of this IntellectSpace Knowledge Map: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=6f7a9c50-8c57-409c-9567-9078c3740bbc