Yahoo!’s board of directors has formally rejected Microsoft’s hostile takeover bid at a meeting in New York.The rebuff, formally announced early Monday, wasn’t a surprise because Yahoo had leaked its intention over the weekend.

A statement on the company’s website said:

“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.”

As expected, Yahoo’s board unanimously decided to spurn Microsoft after concluding the offer — originally worth $44.6 billion or $31 per share — “substantially undervalues” one of the Internet’s prized franchises. The cash-and stock deal is now valued at about $40 billion, or $28.91 per share, because of a drop in Microsoft’s market value.
But Yahoo didn’t raise antitrust concerns about the proposed deal and included language that seemed to invite a higher offer from Microsoft, the world’s largest software maker.

In reply Microsoft release a statement calling Yahoo’s decision “unfortunate,”.

Lets wait and watch the next step of Microsoft.

 

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