Yesterday we reported that Yahoo’s board had privately told several private equity suitors that the company wasn’t interested in being acquired:
Today’s private equity firms are loathe to attempt hostile takeovers, meaning that board opposition could be a deal-breaker. They also like to install their own CEOs, and it’s unlikely that Thompson would accept the job without some assurances that he wouldn’t soon be shown the door by a new owner.
During a subsequent conference call announcing the hiring of new CEO Scott Thompson, Yahoo board member Roy Bostock broadcast the message more broadly: “I do not envision not being a public company going forward. I think we’d have one hell of a challenge [going private]. We are a public company, we expect to run it as a public company going forward. It is kind of a moot issue going forward.”
Given that private equity firms were expected to offer a substantial premium, it’s probably not surprising that Yahoo’s shares have dipped around 5% over the past day.
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