Saturday, February 9, 2008
Yahoo! Set to Reject Microsoft Bid
Posted by Darius Wey in "Smartphone News" @ 03:50 PM
http://blog.wired.com/business/2008...-and-bytes.html
"Yahoo's board is planning to reject Microsoft's $44.6 billion offer, arguing that it "massively undervalues" the company, according to a Wall Street Journal report. The board reportedly won't consider an offer below $40 per share, which, as we understand it, was a number that was tossed around by Microsoft last year. The board also argues that the current offer doesn't adequately reflect the risk that the deal could be overturned by regulators. The board is reportedly planning on sending a letter on Monday, a little more than a week after Microsoft submitted an unsolicited bid of $31 per share, or $44.6 billion, for Yahoo... Given the size of Microsoft's bid, the likelihood of a higher offer from another bidder is minuscule and the list of potential suitors is very short. Still, Yahoo is rumored to be toying with the idea reorganizing the company and outsourcing its search-based advertising to Google in an effort to bolster revenue and remain a standalone company. Some industry watchers have also speculated that Yahoo could be trying to arrange an alternative deal with AOL."
According to reports on the WSJ and NYT, Yahoo! is set to officially reject Microsoft's bid of $44.6 billion on Monday. It's been claimed that Yahoo! considers anything less than $40 per share a slap in the face, so I guess the ball's in your court, Microsoft. Will you raise the stakes with an even bigger debt-inducing bid of $57+ billion? Or allow Google to feel comforted knowing that Microhoo! is still light years away.
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