Yahoo To Reject Microsoft’s Offer?
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.
Yahoo representatives could not immediately be reached for comment.
That’s what they are saying at Yahoo Business.
If Yahoo is turning their nose up at $31/share, they’re nuts. I think Yahoo is wanting to sell off chunks of their business instead, to try and make more money. Yahoo Sports is the biggest sports web presence in the world, even bigger than ESPN. ABC is practically lusting after it.