Microsoft offer rejected by Yahoo!
Yahoo! again rejected Microsoft’s $44.6 billion offer to acquire the online media giant. The CEO of Yahoo! Inc. Jerry Yang sent the rejection letter on behalf of the board of director’s stating why the proposal is not in the best interests of Yahoo! and its stockholders. Furthermore, the letter clearly stated that their any transaction must be at a value that fully reflects the value of Yahoo!, including any strategic benefits to Microsoft and on terms that provide certainty to Yahoo’s stockholders.
Yahoo! laid out its three-year financial and strategic plan to its stockholders, since its initial rejection of Microsoft’s proposal. This plan clearly stated that the proposal substantially undervalues Yahoo’s face value. The company continues to launch new products and has leveraged its scale, technology, people and platforms, which have all boosted its present value. Additionally, the plan showed that the online company promised to foster the mobile ecosystem and extend its leadership in mobile, which in turn increases the company’s value all the more.
The analyst at Forrester Research, Charlene Li said in her blog that it is clear that Yahoo! is not ready to accept Microsoft’s offer and it would be more logical to sign a partnership agreement where the strengths of each company are shared.
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