The Failed Microsoft/Yahoo Deal – the Portland Connection

So it turns out the Rose City had a hand in the progression and eventual failure of the Yahoo/Microsoft merger. An article in today’s Wall Street Journal, among other sources, reports executives from the two companies met here on April 15th at a Portland law firm:

As a result, Microsoft executives were surprised when Mr. Ballmer on April 5 letter sent a letter to Yahoo directors threatening a hostile approach if they didn’t reach a friendly deal by April 26. That spurred Yahoo executives and an entourage of bankers and advisers from both sides to meet with Microsoft on April 15 at a Portland, Ore., law firm. A presentation from Yahoo included a slide that said Microsoft’s offer “significantly undervalues” Yahoo.

Late into the meeting Mr. Ballmer addressed the elephant in the room: “Where are we on price?” he asked Mr. Yang, according to two people who were present. Responding to Mr. Ballmer’s question, Mr. Yang repeated that the original offer of $31 a share “substantially” undervalued the Internet company. Mr. Ballmer again asked for a firm price, and Mr. Yang said he didn’t have a number.

They also reportedly met aboutsocial issues,” such as management and perhaps corporate cultures. I find it interesting the two giants chose to meet in Portland for this meeting. Apart from the law firm, Portland seems to be a good middle ground for the two of them to have traveled to. Wonder if they got a chance to enjoy Stumptown Coffee or Voodoo Doughnuts while here? Anybody know what that law firm is?

POST UPDATED 10:48 AM with more links and info.

1 Comment so far

  1. daaaaave on May 5th, 2008 @ 11:07 am

    Preston, Gates and Ellis aka Preston Gates aka K&L Gates.

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