May 7, 2008 : MS Doesn't Need Yahoo, says Gates

📅 May 7, 2008 - Microsoft chairman Bill Gates says the company should have no problems developing its Internet strategy without the addition of Yahoo (yahoo.com).


The search engine giant declined a revised $47.5 billion offer from Microsoft last weekend, just before Microsoft retracted its offer on Monday.

Gates, who will cease his full-time work at Microsoft come June, says he had no real part in the company's pursuit of acquiring Yahoo.

"The key decisions on that will be made by Microsoft CEO Steve Ballmer, who took a look at Yahoo and decided that, on our own, he likes the stuff that we're doing," said Gates, according to reports. "I wouldn't rule out some partnerships but we don't have anything imminent there."

Yahoo's refusal to accept Microsoft's bid has upset many of its shareholders who feel that the software maker had made a generous offering, considering its share of problems competing with the market-dominating Google.

Shareholders wanting to propose alternative directors to the board must place their nominations by May 15 -- less than a couple months away from Yahoo's shareholder meeting on July 3.

Many institutional shareholders have already spoken out against Yahoo CEO Jerry Yang's discussion to reject Microsoft's offer.

Meanwhile, Yahoo saw a 15 percent drop in shares Monday, but slightly regained its lost shares yesterday. The stocks are currently trading at just over $25, compared to the $33 Microsoft was prepared to shell out.