Corporate annual reports typically include various "risk factors" that can affect a company's business--everything from rising competition to changing economic conditions. But the 10K filing Yahoo! Inc. (NASDAQ: YHOO) published last night goes even further, discussing the negative impact of Microsoft Corp.'s (NASDAQ: MSFT) unsolicited $45 billion acquisition offer. Yahoo! says the offer created a "distraction for our management" (we certainly hope it did) and its employees and uncertainty for the company's advertisers and business partners, which could affect the Internet company's bottom line.
We've already noted the complaints filed against Yahoo! after it turned down Microsoft's offer, but the company also divulges it has been hit with seven class-action complaints related to the deal, noting that the lawsuits and any future litigation may become time-consuming and expensive. Among those filing claims against Yahoo! for breach of fiduciary duty in connection with the offer are Congregation Beth Aaron and The Police and Fire Retirement System of the City of Detroit.
