Yahoo! says 'no' to Microsoft

By Lisa Kerner

Charlotte, N.C., Feb. 11 - Yahoo! Inc.'s board of directors unanimously concluded that Microsoft Corp.'s unsolicited proposal is not in the best interests of Yahoo! and its stockholders, the company announced.

While Microsoft called the decision to turn down the proposal "unfortunate," the company intends to move forward to consummate a transaction.

"The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!'s shareholders are provided with the opportunity to realize the value inherent in our proposal," Microsoft said in a statement.

On Feb. 1, Microsoft proposed acquiring Yahoo! in a stock and cash deal valued at $44.6 billion, or $31 per share.

After its evaluation, Yahoo!'s board determined that Microsoft's proposal "substantially undervalues Yahoo!," according to a company news release.

The board cited Yahoo!'s global brand, large worldwide audience, free cash flow, earnings potential, unconsolidated investments and recent investments in advertising platforms and future growth prospects.

As previously reported, Microsoft believed aligning with Yahoo! would create "a more effective competitor in the online marketplace," which is expected to double to $80 billion by 2010.

Yahoo! provides internet services. The company is based in Sunnyvale, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.