Yahoo! rejects $44.6 billion takover bid
By Jason Bennert
February 11, 2008
Internet giant Yahoo! today formally rejected the $44.6 billion
takeover bid made by Microsoft earlier this month.
The Microsoft bid for Yahoo! is worth $31 a share. However, in
a statement released today, the Yahoo! board of directors concluded
that the company is worth more than that.
"After careful evaluation, the board believes that Microsoft's
proposal substantially undervalues Yahoo! including our global
brand, large worldwide audience, significant recent investments
in advertising platforms and future growth prospects, free cash
flow and earnings potential, as well as our substantial unconsolidated
investments,'' the Yahoo! statement said.
Yahoo! was founded by Stanford University graduate students Dave
Filo and Jerry Yang in 1994. It managed to survive the dot-com
bust of the early 2000s that claimed its original competitors
such as Infoseek and Excite but has faced serious competition
in the last few years from Google. Microsoft officials did not
have an immediate response to the rejection of their offer.