Yahoo Rejects Microsoft Bid || The Mac Observer

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Yahoo Rejects Microsoft Bid

Yahoo Rejects Microsoft Bid

by , 10:55 AM EST, February 11th, 2008

Yahoo officially rejected Microsoft's unsolicited buyout offer on Monday. The Internet search company turned down the US$44.6 billion offer stating that Microsoft undervalued it, and that it was acting in its shareholder's best interests.

Yahoo's Board of Directors unanimously rejected the take over bid and added "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."

Microsoft presented Yahoo with a combined cash and stock buyout offer after the company reported a 23 percent drop in earnings and said that it was planning to cut 1,000 jobs in February. The Redmond-based company hoped to leverage Yahoo to gain a larger slice of the online advertising market and to better compete with Google.

While Yahoo rejected Microsoft's offer, that doesn't necesarily mean the proposed buyout is dead in the water. Microsoft could counter with a new offer, or attempt a hostile takeover.

So far, Microsoft has not responded to Yahoo's rejection.

Observer Comments

Show: Subjects Only | Full Comments

Close Name:houltmac Posts: 264 Joined: 12 Apr 2007
Mon Feb 11, 2008 2:02 pm Subject:

Quote
While Yahoo rejected Microsoft's offer, that doesn't necesarily mean the proposed buyout is dead in the water. Microsoft could counter with a new offer, or attempt a hostile takeover.

While I am not going to pretend I keep up to date with current events or finances at Redmond, my understanding from the couple of stories I originally read about this was that even Microsoft could have been forced to take a loan to follow through with this bid. Would it be possible for them to offer more? Would they really consider it?

I completley understand Yahoo!'s rationale here, and support them entirely... still... $44B is a lot of money to turn down.

Reply | Quote

Close Name:Guest
Mon Feb 11, 2008 3:55 pm Subject: I agree but consider

'I completley understand Yahoo!'s rationale here, and support them entirely... still... $44B is a lot of money to turn down.'

That is absolutely true-so consider the message that is being sent to Microsoft! They are in trouble, folks. Even if their current financial state doesn't reflect it yet, it's coming, methinks. Things could get very interesting . . .

Reply | Quote

Close Name:Intruder - TMO Mac Specialist Posts: 3149 Joined: 07 Jul 2004
Mon Feb 11, 2008 5:59 pm Subject:

This may be more of a rejection of culture than money. The Yahoo and MS cultures may mix as well as oil and water.

Reply | Quote

Close Name:Guest
Mon Feb 11, 2008 6:06 pm Subject:

This is pretty standard fare. Yahoo's board would be derelict if they did not turn down the initial offer and they can make a reasonable argument that the offer as it stands is too low. Expect Microsoft to increase the offer to something between $34-37 per share.

I still think this deal will eventually succeed but I really question what value Microsoft will get from it. I think they will ultimately overpay for talent that will have already moved elsewhere and likely be forced to divest themselves of some of the same assets they really prize.

Reply | Quote

Comment on this Article

Guest Posts Visible. Hide Them.
Back to top Page 1 of 1

You cannot edit your comments. You cannot delete your comments.

Comments are currently closed. Please email the author instead.

Recent Headlines - Updated November 8th

Sat, 7:58 PM: News - Apple TV 3.0.1 Update Fixes Missing Content Bug
Fri, 7:45 PM: Rumor - Taiwan Leak Shows Verizon UTMS/CDMA iPhone for Q3 2010
6:40 PM: News - iPhone Moves Into RadioShack
6:30 PM: News - Apple to Open Stunning Paris Apple Store in Le Louvre on Saturday
5:43 PM: Free on iTunes - Dictionary, Dictionary, Dictionary, And More
4:09 PM: John Martellaro's Blog - Particle Debris (week ending 11/6) Failure IS an Option
3:32 PM: Games - The Latest App Store Games: Gravity Sling, RocketBird, Ground Effect, Checkers!
2:25 PM: Games - Star Soccer 2010 for Mac Puts Gamers in Role of Up-and-Coming Player
2:15 PM: How-To - The Mysteries of Rosetta Housekeeping
1:33 PM: News - iPhone Game Developer Sued for Collecting User’s Cell Numbers
1:17 PM: Games - Warhammer Online Expands Trial Play Option
11:19 AM: Rumor - Apple May Be Bringing RFID to the iPhone

The Mac Observer Reader Specials

TypeStyler For Mac OS X is Now Shipping! Download The Free Fully Functional 60 Day Tryout at www.typestyler.com
RamJet Memory: Mac Pro 8-core 8GB Kit $199.99, 4GB Kits $109.99! Sale on MacBook and MacBook Pro 8GB kits $549.99! New MacBook DDR3 2GB for $49.99. iMac and Mac mini 4GB Kits for $79.99! 1TB SATA Hard Drives for $109.99! Click here
OWC: Get the Right Memory / Ram for your Mac. Top Quality, Competitive Prices, Lifetime Warranty. Expert Support and Video Installation Guidies too! 4.0GB Matched Sets from $87.99, Options up to 32GB. Click here
If you're using a Mac, then you've gotta check out Full Tilt Poker for Mac. This Full Tilt Poker bonus code does the unthinkable, it actually rewards!
For the latest Apple products use Ciao, a price comparison website, to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate mobile phones like the Apple iPhone.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.