It is official now…Yahoo has rejected Microsoft’s offer. Alas a sigh of relief for Google.The reason – Yahoo finds it too low. As I’ve already mentioned in my previous post, Yahoo was offered $44.6bn (£22.4bn) in cash and shares by the software giant Microsoft to compete with Google. The offer was actually 62% above the level at which Yahoo stocks were trading when it was made on 1 February. But somehow Yahoo’s shares closed on Friday at $29.20. So, it was very much sure that the offer was going to be rejected.
Yahoo said the offer “substantially undervalues” the company and is not in shareholders’ interests.
A source quoted by the Wall Street Journal said that Yahoo’s board would be unlikely to consider anything below $40 per share which would be a 109% premium to the $19.18 closing price of Yahoo’s shares the day before the original offer was announced.
Also the thing to keep in mind is that Yahoo’s shares have not traded above $40 for two years.
Let’s see what Microsoft’s next move is going to be.
February 26th, 2008 at 3:04 pm
Wow I had expect yahoo to accept the offer from google
March 25th, 2008 at 11:53 am
Yahoo should not accept any offer from either Microsoft or Google - experienced monopolists. It will share the market between two ‘giants’, while we need free competitiveness for technological advancement. It’s time for the internet regulation. www.omfica.org tries to assure competitiveness of search engines maket, and we should follow its lead.
March 27th, 2008 at 11:36 am
Yahoo should not accept any offer from either Microsoft or Google - experienced monopolists. It will share the market between two ‘giants’, while we need free competitiveness for technological advancement. It’s time for the internet regulation. www.omfica.org tries to assure competitiveness of search engines market, and we should follow its lead.