Its official, Yahoo! has rejected Microsoft’s bid to acquire them for $44.6 billion. Yahoo! believed that the proposal which converts to about $31 per share undervalues the company’s global brand. In a letter filed with SEC, they wrote “Yahoo! Board of Directors has carefully reviewed Microsoft’s unsolicited proposal with Yahoo!’s management team and financial and legal advisors and has unanimously concluded that the proposal is not in the best interests of Yahoo! and our stockholders.”
So now it’s Microsoft’s turn to either raise their bid to over $40 per share (which would add another $12 billion to earlier bid) or go hostile by directly approaching the shareholders. In both the cases, Microsoft will have to deal with Department of Justice for possible antitrust issues.
In another related rumor, Times Online is reporting that Yahoo! has reinitiated the merger talks with AOL. Yahoo!’s future looks pretty interesting to me. Let’s just wait and watch how Microsoft responds to Yahoo!’s refusal.
Written by 
wrote, on February 12th, 2008
[...] Tech-Buzz Internet News [...]
wrote, on February 12th, 2008
This deal is taking a pretty interesting turn. It should be fun reading news about the negotiations of these big companies.
wrote, on February 12th, 2008
[...] a response to Yahoo!’s rejection, Microsoft has issued a statement and it seems as if MS is planning to bypass Yahoo’s board [...]