Microsoft are not planning on increasing Yahoo! Bid
Yahoo’s refusal to accept their bid and their move to start talks with AOL and others to look at alternatives, maybe mergers, has not moved Microsoft to increase their bid. Two months back Microsoft had made a bid of $44.6 million and according to Reuters:
“Although some technology blogs have speculated that Microsoft is planning to raise its bid, one person familiar with the company’s plans said Microsoft does not feel the need to pay more because no viable strategic alternatives have emerged.”
“Why would Microsoft bid against themselves? The company sees no reason to bid against itself,” people familiar with Microsoft’s plans said. And since they were not authorised to speak on the subject they spoke on condition of anonymity.
Microsoft is comfortable biding its time also because a recent road show by top Yahoo! executives that was intended to build up support among American institutional investors and along with that prove that the bid was too low was considered by them as ‘underwhelming’ one of these people said.
Sources have also told Reuters that a meeting has taken place between Microsoft and Yahoo’s executives.
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