Yahoo Shareholders Say Company Abused Their Rights
A lawsuit has been filed against Yahoo by shareholders who say Yahoo’s board of directors have put shareholders’ finances at risk. They are angry that Yahoo turned down Microsoft’s offer to purchase the company for $33 a share; Yahoo representatives had said it was worth $37. But before talks of a sale began, Yahoo shares were trading for just $19, so to shareholders, the buyout would have been a huge gain.
Speculation as to why the board and co-founder held out range from greed about their own shares and inside knowledge of company plans to holding on to a stubborn anti-Microsoft grudge from the old Silicon Valley days. Regardless of the reason, shareholders are up in arms over Yahoo having acted so drastically without soliciting input from the shareholders effected by the deal (or lackthereof).
Tags: Consumer Fraud, Microsoft, Yahoo
