The Mac Observer

Skip navigational links

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.

Recent Headlines - Updated August 29th

Thu,8:01 PM
Apple Granted 14 Years Protection for 5th Ave Glass Cube by Patent Office
7:39 PM
Apple: HealthKit Data Off Limits to Advertisers
6:40 PM
How To Free Up iPhone Storage by Deleting Photos From Messages
6:05 PM
Last Chance for TuneUp Deal at $19.95
2:00 PM
Why a 12-inch iPad is Almost Certain
1:50 PM
TMO Daily Observations: 2014-08-28
12:27 PM
Apple Issues Invites for September 9th Media Event
11:47 AM
Twitter Opens Analytics Tools to All Users
10:42 AM
Report Claims this is the Year of the NFC iPhone
9:24 AM
Apple Denied Samsung Sales Injunction Yet Again
Wed,7:16 PM
The Ruby On Rails Rookie To Rockstar Training Bundle: $49
6:29 PM
ACM 269: China’s OS Ambition, iWatch Rumors, Cool Headphones
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!