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Technology Industry Yahoo! rejects Microsoft bid
Technology Industry Yahoo! rejects Microsoft bid | Yahoo! rejects Microsoft bid |
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| by Stephen Withers | |
| Tuesday, 12 February 2008 | |
  
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The offer valued Yahoo! at $US44.6 billion, a 62 percent premium on Yahoo!'s closing price the day before the offer was made. But the Yahoo! board has unanimously decided the bid is not in the best interests of Yahoo! and its stockholders. "After careful evaluation, the Board believes that Microsoft's proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments," company officials said in a brief statement. "The Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders." The announcement follows rumours that Yahoo! was looking for a higher bid, whether from Microsoft or another potential purchaser. Like many companies, Yahoo's share price had been drifting downwards during the last three months. THe bid from Microsoft restored it to levels not seen since early November 2007. At the time of writing it was trading around $US29.80, 2 percent up from the previous closing price of $US29.92. Microsoft's share price continued its downward trend since announcing its bid for Yahoo!, with a further drop following Yahoo!'s rejection. It has regained some ground during today's trading, and is currently at $US28.16, 1.4 percent down on the previous close. |
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