Yahoooo…Yahoo! shows Microsoft the finger
Posted by Kavitt S on 08 Apr 2008 | Tagged as: Acquisitons & Mergers, Business News - Global
Yahoo’s response to Microsoft offer
Board of Directors of Yahoo! Inc. have rejected Microsoft’s offer in a letter sent to Steve Ballmer, Chief Executive Officer of Microsoft Corporation.
Board cited various reasons for this decision, which include “Yahoo!”’s global brand name, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as its substantial unconsolidated investments. The letter also said that Yahoo! continues to believe that the proposal is not in its best interests and those of its stockholders.
Finally, the letter concluded with this strong statement against Microsoft: “Contrary to statements in your letter, stockholders representing a significant portion of our outstanding shares have indicated to us that your proposal substantially undervalues Yahoo!. Furthermore, as a result of the decrease in your own stock price, the value of your proposal today is significantly lower than it was when you made your initial proposal. ”
The original letter addressed to Steve Balmer.. Continue Reading»
