Monday, February 11, 2008
Posted by Darius Wey in "Digital Home News" @ 07:30 PM
"Microsoft Corp. (NASDAQ:MSFT) today issued the following statement in response to the announcement by Yahoo! Inc. (NASDAQ:YHOO) that its Board of Directors has rejected Microsoft’s previously announced proposal to acquire Yahoo!: It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties. We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market. A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.""
Long story short, Microsoft is a little disappointed, but undeterred by Yahoo!'s rejection of the $44.6 billion bid, and seems intent on pressing on with the potential acquisition one way or the other. It's unclear what will unfold in the days ahead. We may see the initial bid get pushed to a staggering $57+ billion, or more realistically, we may see it stay as-is and go directly through the shareholders in an attempt to put pressure on Yahoo!'s Board of Directors. Get out the popcorn, folks. This is proving to be one exciting corporate tennis match.