It’s official: Yahoo is distracted by Microsoft offer

It’s official. Microsoft’s unwanted proposal to buy Yahoo “has created a distraction for our management and uncertainty that may adversely affect our business”, according the company’s 10-K filing with the SEC today.

That detail showed up in the 10-K section devoted to Risk Factors, which begin with the fact that “We face significant competition from large-scale Internet content, product and service aggregators, principally Google, Microsoft and AOL.” AOL? Really?

And the legal expenses at Yahoo presumably ratcheted up a bit this month, given that since Feb. 1 four separate shareholder lawsuits have been filed against it in Santa Clara County’s Superior Court related to the Microsoft offer, including one on behalf of Congregation Beth Aaron, with three more filed in the Court of Chancery of the State of Delaware .

Yahoo also reported that it bought 57.9 million shares of its own stock last year paying an average of $27.34 per share. And since then, the company has spent $79 million buying 3.4 million more shares, this time paying an average of $23.39 per share. Presumably those repurchases stopped last month after Microsoft made its offer to buy the company for $31 per share.


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  • Why is a synagogue suing Yahoo? It’s a major shareholder? How peculiar.