Archive: February, 2008

Yahoo Board to Reject Microsoft Bid

Sunday, February 10, 2008
Posted by Jim Hedger @ 10:54 am

The Wall St. Journal is reporting that Yahoo’s Board of Directors will issue a statement on Monday rejecting Microsoft’s $31/share offer. According to the Journal, the Board feels the bid is far below the true value of Yahoo and wants Microsoft to sweeten the offer by at least $9/share.

The source also said that the Board believes Microsoft is wary of pushing the take-over bid much further for fear of alienating its own shareholders, Yahoo employees, or government regulators.

Observers also expect Yahoo to issue a rebuilding plan to satisfy its investors as the company moves to protect its independence. The Board was said to be considering other options last week, including a paid advertising deal with Google that could potentially increase the monetization of Yahoo ads by several cents per click.

If Yahoo’s Board rejects the offer, Microsoft will be forced to either immediately up the offer or prepare for a difficult fight to oust current Board members at the next annual general meeting.