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Yahoo to Reject Microsoft Bid

under $40 a share=no talks...

     
7:29 pm on Feb 9, 2008 (gmt 0)

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In a bid to remain independent, Yahoo plans to reject Microsoft Corp.’s unsolicited takeover offer, according to reports on the Wall Street Journal’s web site.

Quoting sources familiar with the situation, the Journal reports that Yahoo’s board feels the offer of $31 per share “massively undervalues” the company. A letter spelling out the position is expected to be sent Monday. Yahoo also expressed concern that Microsoft’s offer does not account for risks to Yahoo should the deal be overturned by regulators.

The Journal source said the company would be unwilling to consider an offer below $40 per share, which would represent a $12 billion increase over Microsoft’s original $44.6 billion bid. It is unclear if Microsoft would be willing to increase its bid by such a significant amount.


[biz.yahoo.com...]
8:13 pm on Feb 9, 2008 (gmt 0)

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Report: Yahoo board plans to turn down Microsoft bid [theglobeandmail.com]

Yahoo Inc's board believes Microsoft Corp's unsolicited bid of $44.6-billion to acquire Yahoo "massively undervalues" the company and directors are set to reject the offer, the Wall Street Journal reported on Saturday, citing an unnamed source.

The Journal quoted the unnamed source as saying Microsoft's offer amounted to an attempt to "steal" the company and that Yahoo is unlikely to consider any offer under $40 per share.
9:22 pm on Feb 9, 2008 (gmt 0)

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If they say $40 might be okay, then $31 certainly is not a steal (given big part of it is cash), especially given price of shares before this offer (a lot less than $31).

Looks like Yahoo is just playing for time hoping that after brilliant move Microsoft will make a mistake.

9:47 pm on Feb 9, 2008 (gmt 0)

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this is already more expensive for MSFT, their stock (to be used as 50% for payment) has gone down quite a bit since they announced it. Between the stock decline and new demands the offer could be 40-50% more
10:34 pm on Feb 9, 2008 (gmt 0)

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The board at yahoo can go whistle against the wind. The shareholders will decide and a quick massive gain compared to the current stock price will persuade them. We have seen this is in the UK with building societies being taken over by banks. Shareholders are the most fickle of all investors. Stick a big juicy carrot in front of their eyes and they will trample all over the directors to take their profit.

IMO of course.

10:43 pm on Feb 9, 2008 (gmt 0)

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Let's hope Yahoo! can fight of the enemy
11:14 pm on Feb 9, 2008 (gmt 0)

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"At the meeting on Friday, the Yahoo board was also presented with options for maintaining the company’s independence, including an advertising partnership with Google that would probably improve Yahoo’s bottom line, people familiar with the discussions said."

[nytimes.com...]

I would kind of like it if they worked together, and replaced Yahoo Search Marketing with adwords...

11:54 pm on Feb 9, 2008 (gmt 0)

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I would kind of like it if they worked together, and replaced Yahoo Search Marketing with adwords...

It's all about QUALITY -- eh, Phaedrus? ;-)

12:37 am on Feb 10, 2008 (gmt 0)

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I think it would be more instructive to understand this if we knew at what stock price Yahoo! and Microsoft were when they initially made the offer last year. I say this because I suspect it was a lot more expensive back then and Microsoft will have no problem increasing the offer a fair bit in order to get Yahoo's board approval.
1:29 am on Feb 10, 2008 (gmt 0)

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Clark,
IIRC, they offered $40+ a share back then. But, Y! shares are way down now so even $31 was a 60% premium
3:11 am on Feb 10, 2008 (gmt 0)

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>> massively undervalued?

Who said this?

Should be awarded the `Joke of the Year 2008`

7:02 am on Feb 10, 2008 (gmt 0)

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I think we have heard the end of this, for now.

Not for one minute do I think that MSFT board will attempt a hostile takeover nor do I think that they will see the value of Yahoo at $40 a share.

However, I remain open that if Yahoo keeps in a downward spiral, the cards may come back on the table.

And at that time, Yahoo’s board and shareholders may very well regret having passed on this current offer.

7:03 am on Feb 10, 2008 (gmt 0)

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Yahoo’s board feels the offer of $31 per share “massively undervalues” the company

A few years down the line, this quote may be considered hilarious if a recession really kicks in.
11:10 am on Feb 10, 2008 (gmt 0)

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It's a bargain. I think the coming days will tell who is/was right. Yahoo is still capable enough to fight back but what's problem with Jerry. He is so young and why no dynamic move appears from his side. Whereas google is far more advance in the web and technology, Yahoo the prime internet of today's world is in an uncomfortable situation. That's too bad and sad.
2:31 pm on Feb 10, 2008 (gmt 0)

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Let's hope Yahoo! can fight of the enemy

Why? They are going no where without someone to help - just see their leadership and strategies to date... G is more of enemy as they really will see the death of Y! as mid term they will simply strip out more and more value from Y! as they need to prop up their own share value.

LOL - undervalues.... blimey maybe MSFT forgt about factoring the mind-blowing capabilities of Panama (which IMO is leagues behind G despite all the hoo haa and money spent...)

Would not surprise me if M$ walk away and come back in 12 months with $20 a share being a 60% premium and see the deal completed with Y! begging....

There sure is a hell of lot more that MS can do with $55bn to create and shore up rev streams for shareholders over and above buying an ailing business that they would have problems integrating anyway.

5:48 pm on Feb 10, 2008 (gmt 0)

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Undervalued? Yahoo needs to check the stock prices over the last year. Before this announcement it was trading at $21/share.
6:19 pm on Feb 10, 2008 (gmt 0)

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Undervalued? Yahoo needs to check the stock prices over the last year. Before this announcement it was trading at $21/share.

Ummm... [finance.yahoo.com...] or [finance.yahoo.com...]

Yahoo was $31 this November and $21 appears to be their lowest pps. This, has to be kept in mind to. Unless you need to sell, selling now might be the best idea.

8:34 pm on Feb 10, 2008 (gmt 0)

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Too late to edit: "Yahoo was $31 this November and $21 appears to be their lowest pps. This, has to be kept in mind too. Unless you need to sell, selling now might be the best idea. "

change to "NOT the best idea."

8:56 pm on Feb 10, 2008 (gmt 0)

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It is unclear if Microsoft would be willing to increase its bid by such a significant amount.
Yahoo Inc's board believes Microsoft Corp's unsolicited bid of $44.6-billion to acquire Yahoo "massively undervalues" the company
Would not surprise me if M$ walk away and come back in 12 months with $20 a share being a 60% premium and see the deal completed with Y! begging....

I had some intuition that it may end in such absurdity. Its happening? Well, MSFT might be saving and coming up with 44.6 minus 12 in next 2 years or before? Wow! Google might be relaxed now :- )
5:15 am on Feb 11, 2008 (gmt 0)

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It is not a rejection. It is a Request for More Money
7:35 am on Feb 11, 2008 (gmt 0)

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it could seen as a rejection.

You make a $200 offer for my bike and I say, yeah it's for sale, but at $2500. Is it an offer for more money or...?

8:38 am on Feb 11, 2008 (gmt 0)

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Yahoo does not ask for 2500 bucks. Its bottom line is 300 dollars.

:)

It is just a matter of time for Microsoft to acquire Yahoo.

4:43 pm on Feb 11, 2008 (gmt 0)

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