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Sunday, February 10, 2008

WSJ: Yahoo Rejects Microsoft Offer (At That Price, At Least)

The Wall Street Journal updates us on the Microsoft bid to grab Yahoo:

Yahoo Inc.’s board plans to reject Microsoft Corp.’s unsolicited $44.6 billion offer to acquire the Web giant, a person familiar with the situation says.

After a series of meetings over the past week, Yahoo’s board determined that the $31 per share offer “massively undervalues” Yahoo, the person said. It also doesn’t account for the risks Yahoo would be taking by entering into an agreement that might be overturned by regulators. The board plans to send a letter to Microsoft Monday, spelling out its position.

The WSJ says the Yahoo board thinks Microsoft is just trying to take advantage of the company’s current low to “steal” it. Microsoft’s bid was $31 per share but the article goes on to say Yahoo is “unlikely to consider any offer below $40 per share.” Maybe they want to try drive up the price?

[Thanks Pd!]


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