When Microsoft threw their bid to acquire Yahoo!, a lot people were upset including Google. The Wall Street Journal is now reporting that Yahoo!’s board of directors had a series of meetings over the issue and they are seriously considering dropping the unsolicited $44.6 billion offer.
Why will they be refusing? Well, Yahoo!’s board thinks that $31 per share offer “massively undervalues” Yahoo. Yahoo’s stock prices recently took a plunge, and the board believes that Microsoft is just trying to take benefit out of the opportunity to “steal” Yahoo.
Yahoo! wouldn’t be happy for anything less than $40 per share. It’ll be interesting to see, if Microsoft is willing to shell-out another $12 billion premium to acquire Yahoo! or make a “hostile” takeover against the wish and will of the management. If sometime like that happens, it’ll cause a lot of unrest among Yahoo engineers. Yahoo’s board is expected to write a letter to Microsoft talking about their stance sometime later today.
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