Microsoft emails its staff to reassure Yahoos

Hey guys, it's all about you

By John Oates • Get more from this author

Posted in Financial News, 25th February 2008 11:38 GMT

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!!!!! Microsoft exec Kevin Johnson has emailed all Microsoft staff to reassure them about the Yahoo! acquistion.

The mail, which was publicly released, seems to be as much for Yahoo! staff as for existing Microsofters.

For instance, the mail reassures west coasters that Microsoft intends to keep Yahoo!'s Silicon Valley offices and that parts of the company's brand are likely to survive the takeover.

The mail warns that there could be redundancies because there is overlap between the two companies, but that Microsoft is a growing company and needs staff "throughout the company as a whole".

Still, Microsoft staff are warned not to jump the gun - they should "not speculate with Yahoo! employees about the proposal or about what a deal would mean for the combined company".

The mail also reassures staff that the takeover would not be hamstrung by incompatible technology, even though Yahoo! is a non-Windows house.

The full email is available here.

In other news, two major Yahoo! shareholders have started legal action against the company for turning down the Microsoft bid.

Two public pension funds in Detroit representing firefighters, police and other public employees are taking legal action against Yahoo! for rejecting Microsoft's offer.

Documents filed with the Chancery Court in Delaware criticise not just the rejection of the takeover but other actions taken by directors seen as making any acquistion more difficult. The Wall Street Journal reported last week that Yahoo! is increasing severance packages for staff in order to make any takeover more expensive. ®

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