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Yahoo To Reject Microsoft Bid

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It seems $44.6bn isn't enough...

Contrary to press speculation, Microsoft's mega-offer for Yahoo last week (the largest bid in its history) is set to be turned down.

This news filters through from the Wall Street Journal which claims to have a source close to the deal who says Yahoo believes the bid "massively undervalues" the company - ambitious coming from a struggling brand. In fact, so bold is Yahoo's standpoint that the source claims Microsoft is trying to take advantage of Yahoo's recent dip on the stock market so it can 'steal' the firm - again an interesting perspective on a deal which offers a huge 62 per cent premium on the existing share price.

By way of negotiation, the WSJ says Yahoo is unlikely to entertain any bid which values its shares at less than $40 apiece, a sum which would demand the buyout be priced at closer to $60bn. Of course the desperation seen in Redmond these days may well mean Microsoft comes back with a renewed bid. After all its recent track record has seen it buy online advertising firm aQuantive for a massively inflated $6bn and pay a crazy $240m for just a 1.6 per cent stake in Facebook.

Scare tactics or bartering? We'll soon know...

Link:
WSJ Report

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