Yahoo officially rejects Microsoft's offer
After it had already become known that Yahoo planned to reject Microsoft's multibillion-dollar takeover bid, the U.S. Internet company has now officially turned it down. Yahoo said the offer significantly undervalued the company.
After it was already known that Yahoo was planning to reject the billion-euro takeover bid from Microsoft, the US Internet company has now officially turned down the offer. According to a statement on Monday, the offer clearly undervalues Yahoo. A potentially long tug-of-war has thus begun. Yahoo will continue to examine all strategic options, the company announced. The Board of Directors is unanimously of the opinion that the offer is not in the best interests of the company and its shareholders.
Microsoft offered 31 dollars per Yahoo share at the beginning of the month, valuing Yahoo at 45 billion dollars. Analysts believe a higher offer from Microsoft is conceivable in view of the company's bulging war chest. Yahoo's refusal is seen as an attempt to at least drive up the price if a takeover cannot be avoided in the end.
As a defensive strategy, Yahoo is reportedly exploring a cooperation with Google or with the US media giant Time Warner's Internet service AOL. A counter-offer to Microsoft is not yet on the table.
Microsoft wants to buy Yahoo as amicably as possible with the management, according to analysts. Otherwise there is a risk that many important employees will leave the company. Yahoo is currently on the verge of cutting 1,000 of its 14,300 jobs worldwide following a renewed slump in profits. Activities in Europe are also under scrutiny.
Microsoft offered 31 dollars per Yahoo share at the beginning of the month, valuing Yahoo at 45 billion dollars. Analysts believe a higher offer from Microsoft is conceivable in view of the company's bulging war chest. Yahoo's refusal is seen as an attempt to at least drive up the price if a takeover cannot be avoided in the end.
As a defensive strategy, Yahoo is reportedly exploring a cooperation with Google or with the US media giant Time Warner's Internet service AOL. A counter-offer to Microsoft is not yet on the table.
Microsoft wants to buy Yahoo as amicably as possible with the management, according to analysts. Otherwise there is a risk that many important employees will leave the company. Yahoo is currently on the verge of cutting 1,000 of its 14,300 jobs worldwide following a renewed slump in profits. Activities in Europe are also under scrutiny.
