Shareholder 'discontent' for Yahoo! and Microsoft

12th May 2008

Investors in both Microsoft and Yahoo! are unhappy with the way the aborted takeover talks were handled, a new report claims.

Microsoft chief executive Steve Ballmer and his Yahoo! equivalent, Jerry Yang, are facing a backlash from shareholders who feel the deal did not progress in the way they would have wished, the Guardian reports.

Activist hedge fund manager Eric Jackson told the Guardian that Mr Yang's demand for a higher offer from Microsoft did not reflect the views of Yahoo! shareholders.

"What I have heard, though, universally, is disbelief and anger at his arrogance and disconnection from reality," commented Mr Jackson.

The report came after Eric Schmidt, Google's chief executive officer, told a meeting in California last week that a pilot test of an advertising tie-up between Yahoo! and Google was successful.

Meanwhile, Mr Ballmer is reportedly facing discontent over his failure to consult shareholders over his initial offer of $31 (£15) per share - which then had to be raised to $33 per share when Microsoft's price fell.