In the olden days, armies often didn’t attack castles so much as sit around them; weeks or months later, the defenders would run out of food and their leaders would have few options other than to surrender. Yahoo may be placing itself in a similar situation in its fight against Microsoft.
Yahoo has stalled, stalled, and then stalled some more. From its initial 57-word acknowledgement of Microsoft’s offer to changed bylaws concerning the board of directors, the company has moved slowly and pushed back deadlines at every turn.
Jerry Yang – CEO Of Yahoo
Now, the end of the first quarter is in sight. If Yahoo’s finances aren’t in great shape, Henry Blodget anticipated the following scenario: “Microsoft . . . just after Yahoo reports a horrendous first quarter, pulls its offer for the company. Yahoo’s stock collapses, costing shareholders 40% overnight. Jerry & Co. are pummeled with shareholder complaints and lawsuits, and Yahoo’s employee and shareholder morale hit all-time low.”
Blodget continued, “Then, just when all hope seems lost, Microsoft comes charging back and saves the day with a $25 bid, and Yahoo owners flatten Jerry & Co. in a stampede to tender their shares.”
Saves the day, or, as it were, takes over the castle, with whoever’s left inside happy to see someone who will feed them.
We know this isn’t a perfect analogy; people inside besieged castles, whether they were soldiers or civilians, frequently wound up getting killed. But Jerry Yang had better hope Yahoo has a good first quarter, because the castles’ lords were almost always executed.
