Yahoo! to reject Microsoft’s Bid to Acquire

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.

This post was published by on February 11, 2008

About the Author: Thilak Rao works as a Social Media Expert. He is one of the first professional bloggers from India, and he loves to write, travel and click photos. Follow him on Twitter @thilak

  • http://www.codenamesearch.com/upcoming.php Rapidshare search

    I think MS will still buy them. They just want more :)

  • http://green-flamingo.com Nathaniel

    Some times it’s tough with these deals. I too wonder what will happen.

  • http://earncent.com/blog titan

    Hehe. I don’t think Yahoo will take that offer. Its ovious that Microsoft will dissapoint..

  • http://www.rapidsharetools.com RapidMaster

    Only Two Words – MS sucks !!!!!

  • http://technodorm.com Fahad

    Well, this will be an interesting story to follow…..:)

  • http://www.globalrvtrader.com bhavik shah

    i think its good that yahoo rejects the offer……microsoft are in to offline sofwares…..and it also better for google i will be very happy if google and yahoo become one……