Sun 10 Feb 2008
Yahoo Rejects Microsoft Bid
Posted by Robin Bal under Investing , MoneyMatters , News , Stock Markets[4] Comments
In a bid to remain independent, Yahoo plans to reject Microsoft Corp.’s unsolicited takeover offer, according to reports on the Wall Street Journal’s web site.
Quoting sources familiar with the situation, the Journal reports that Yahoo’s board feels the offer of $31 per share “massively undervalues” the company. A letter spelling out the position is expected to be sent Monday. Yahoo also expressed concern that Microsoft’s offer does not account for risks to Yahoo should the deal be overturned by regulators.
The Journal source said the company would be unwilling to consider an offer below $40 per share, which would represent a $12 billion increase over Microsoft’s original $44.6 billion bid. It is unclear if Microsoft would be willing to increase its bid by such a significant amount.
The two companies have been in discussions about an alliance or merger for more than a year. Yahoo has long hoped to remain independent, believing it can reverse its fortunes and lift its flagging stock price.
In the summer of 2007, investors believed it was possible as well. Yahoo co-founder Jerry Yang replaced Terry Semel as CEO and announced he would unveil a new strategic plan for the company within 100 days.
“There will be no sacred cows and we need to move quickly,” he said. But, after the 100 days – and then some – passed, investor patience wore thin, driving the stock lower.
In late January, the slumping Internet pioneer reported a fifth-consecutive quarter of lower profits and warned of “headwinds” for 2008. Yahoo’s battered stock fell to a four-year low, below the $20 per share level, and Microsoft pounced.
Read Yahoo rejects Microsoft bid
February 10th, 2008 at 12:36 pm
For Yahoo to succeed on its own, it would have to expand in the online search advertising market. At the moment, they are very far behind Google. Unless a major development occurs where they can find a way to monetize the traffic to their portal sites, I don’t see how they can improve.
February 11th, 2008 at 1:19 am
Yahoo Rejects Microsoft Bid | Deliggit.com…
fortunewatch.com
The Journal source said the company would be unwilling to consider an offer belo…
February 12th, 2008 at 12:13 pm
I just see a slow slide into irrelevance for Yahoo. They have some great properties but on the whole, no real traction.
And I gotta agree; Jerry Yang is lost. When Steve Jobs first went back to Apple he started making some very big and bold moves very quickly that breathed life back into the company – it was a lesson in restructering that everyone can learn from.
February 13th, 2008 at 5:46 am
For Yahoo to succeed on its own, it would have to expand in the online search advertising market i couldn’t agree more