Yahoo! Board to Reject Microsoft Bid
February 10th, 2008 at 7:26 pm by TimFollowing Microsoft’s $44.6 billion offer to take over Yahoo!, it’s effects on Google and Microsoft’s reasoning behind it, Yahoo!’s board has announced it plans to reject the bid.
With an announcement released by The Wall Street Journal, according to a person familiar with the situation , Yahoo’s board determined that the $31 per share offer “massively undervalues” Yahoo. The board believes that Microsoft’s is trying to take advantage of the recent weakness in the company’s share price to “steal” the company. The decision to reject the offer signals that Yahoo’s board is digging in its heels for what could be a long takeover battle. The company is unlikely to consider any offer below $40 per share, the person said.
It seems that Yahoo! is simply trying to get more money out of the deal. If the Yahoo! board seriously believed their stock was being undervalued, they would be making huge stock buybacks. It’s the end of Yahoo’s glory days, and they need to get while the getting’s good. Microsoft should also stop at this point, and use the $40 billion to create a search engine that people will actually use. It’s time to start innovating Microsoft.
1 Trackback(s)