Tuesday, April 8, 2008

Yahoo Responds: Deal Still Undervalues, Pay More and Deal Done

Yahoo on yesterday (April 07) issued a statement in response to the letter from Steve Ballmer, Chief Executive Officer of Microsoft Corporation.

Yahoo Board of Directors still consider that the merger deal at $31 per share still undervalues the company and have rejected the offer once again.

The statement can be summarized as follows:
  • Your initial $31 per share offer is too low.
  • Despite what you may think, our forecasts are accurate, expecting a better Q1.
  • We are and have been announcing new products and services that should be considered in a revised offer (Yahoo! refers to their recently launched AMP, a "new advertising management platform designed to dramatically simplify the process of buying and selling ads online.")
  • Don't forget possible antitrust issues.
  • Yes, our stock price has dropped, but so has yours, which means the offer, already too low, is even lower.
But what is interesting is Yahoo! for the first time is saying publicly that we are not opposed to a deal with Microsoft, provided the deal is a fair one.

Mr. Ballmer, that is some forward movement from Yahoo's side. So no more press releases, now you up the price of a share by a dollar or two and just finish off the deal.

BTW: The never-ending saga continues...

See Also:
Microsoft-Yahoo Saga: The Latest
Microsoft and Yahoo! Second Merger Meeting a Failure
Microsoft Not to Raise Yahoo Bid Offer
Schmidt: Yahoo Microsoft Deal Could hurt Internet

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