Yahoo to reject Microsoft’s $44.6 billion unsolicited takeover bid

“Yahoo! Inc., the world’s second most popular Internet search engine, plans to reject Microsoft Corp.’s $44.6 billion unsolicited takeover offer, the Wall Street Journal reported, citing a person familiar with the situation,” Ari Levy reports for Bloomberg.

Levy reports, “The board decided the price ‘massively undervalues’ the Sunnyvale, California-based company, and Yahoo may face risks because regulators could oppose the combination, the newspaper said today. On Feb. 1, Microsoft offered $31 a share in cash and stock for Yahoo, 62 percent more than the price before the bid.”

“Chief Executive Officer Jerry Yang, who said this week that Yahoo is examining its options, may consider a partnership with bigger rival Google Inc. or ways to wrest a higher offer from Microsoft,” Levy reports.

“Yahoo might seek help from rivals, soliciting other bids or seeking partnerships with Rupert Murdoch’s News Corp. or Google to thwart Microsoft, according to analysts including Stanford Group Co.’s Clayton Moran,” Levy reports.

“The New York Times reported Feb. 4 that Google CEO Eric Schmidt contacted Yang to suggest a partnership between their companies,” Levy reports.

Full article here.

[Thanks to MacDailyNews Reader “Ampar” for the heads up.]

51 Comments

  1. <i>Yahoo may face risks because regulators could oppose the combination<i>

    Um, you mean the same regulators who wouldn’t do anything about MS’s existing monopoly and blatant abuses?

    This is just posturing by everyone involved. Ballmer will pay whatever it takes to land Yahoo. The more MS has to borrow, the better.

  2. ChrissyOne — exactly.

    $44.6 billion is a large amount of money — even for Microsoft. Considering nearly everything Microsoft gets involved with fails, the Yahoo takeover would essentially be the same as Microsoft flushing $44.6 billion dollars down the toilet. I was looking forward to it.

    Oh well…

  3. “The New York Times reported Feb. 4 that Google CEO Eric Schmidt contacted Yang to suggest a partnership between their companies,” Levy reports.”

    I think this is a great idea – there should be an anti-MS cartel, involving Yahoo, Google, Apple, Sony, Sun, etc…

    Divide and conquer, unite and rule!

  4. Hey can this change the value of money etc?
    when the $44 B is a waste of time and is wasted.
    Perhaps we could have a Better economy.

    PS: Can Apple please invest in NZ with a store.
    ” width=”19″ height=”19″ alt=”smile” style=”border:0;” /> Thanks and Even a cell phone Network would be cool.

    OK>

  5. Yahoo’s stubbornness will be their downfall. You had your chance, Yahoo, and now you will pay dearly for your obstinacy. I wouldn’t want to be Yahoo or Google right now as MSN will come back bigger and stronger. Prepare yourselves for the flood of magnificent customer-focused innovation soon to be unleashed from Redmond under the ‘Live’ banner. Those of us who proudly stand by Microsoft will be richly rewarded. I can’t wait.

    These Yahoo dorks remind me of the MAC sheep who think they can get along without Microsoft. How wrong they are. Those who spurn the coveted Microsoft brand will be in a world of hurt, and in short order. You Yahoo fans and MAC lemmings really think a bunch of also-rans can unite and put a dent in mighty Microsoft? Prepare to be steamrolled by the Redmond machine. You have been warned.

    Your potential. Our passion.™

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