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Source: Yahoo rejects Microsoft bid

updated 07:50 pm EST, Sat February 9, 2008

Yahoo Rejecting MS Bid

Yahoo has rejected Microsoft's $44.6 billion takeover bid, says a Wall Street Journal source allegedly close to the deal. After a last-minute meeting yesterday, Yahoo's board is said to have rebuffed the offer from Microsoft believing that the Windows developer is acting out of opportunism. The buyout offer was an attempt to prey on Yahoo at a weak point in its history, the rumored insider says. Although the offer of $31 per share is significantly higher than Yahoo's stock value at the time of the proposal, the search engine firm's executives reportedly believe that this offer is undervalued and are waiting for a bid of $40 per share or more, which could raise the worth of the bid to $56 billion.

As a result of the decision, Yahoo may still be willing to consider a Google alliance or a similar deal to sour the prospects for Microsoft. Yahoo may alternately be placing a calculated bet that Microsoft would be unwilling to generate the ill will that would likely stem from a genuinely hostile takeover, the newspaper notes, as many employees may openly resist a forced buyout.

Microsoft had initially tried to position its bid as a mutually beneficial deal that was the culmination of months of "off and on" negotiaton, claiming that both it and Yahoo would need to merge to provide a major alternative to Google. However, Yahoo's initial response and later investigation revealed that Microsoft was ultimately fulfilling an ultimatum that threatened Yahoo with a public declaration of the bid if the latter company did not agree to a deal in private.



By Electronista Staff
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  1. howiethemacguy

    Fresh-Faced Recruit

    Joined: Sep 2007

    0

    Good!!

    There's no need for Microsoft to get their grubby hands on another company only to pervert it with their filthy technology.

  1. tonton

    Senior User

    Joined: Mar 2001

    0

    Too bad.

    If the deal had gone through I have no doubt it would have been the beginning of the end for Microsoft.

  1. Constable Odo

    Fresh-Faced Recruit

    Joined: Aug 2007

    0

    Microsoft will never fail

    because major businesses run Windows and those businesses will never give it up. The people that are in IT are too scared of change.

  1. Smurfman

    Fresh-Faced Recruit

    Joined: May 2001

    0

    re: constable odo

    It seems that way sometimes, but I believe it's only a matter of time before Microsoft's hold on the industry will be broken.

    In our business, there are numerous employees (COO's and presidents especially) who I have spoken with that are interested in Macs. This doesn't make for a switchover to Macs but the interest and desire for using a Mac is a first step.

    A younger, more open IT generation, is coming into the workforce. There is much more interest in Microsoft alternatives than ever before.

    Last, I believe software/hardware technology found in future Macs (within 2-4 years) will allow 90%+ Windows applications to run natively within OS X (without Windows). Hopefully not in a "clunky" way, but seamlessly.

    I, personally, do not know if this is a good thing for the Mac community, but it would be a draw for those businesses who would like to go sans-Microsoft but cannot find their software for other platforms and do not want to use Window's on a Mac.

    In any case, all regimes fall given time. Microsoft is no exception.

  1. robttwo

    Fresh-Faced Recruit

    Joined: Nov 2005

    0

    all things fail

    Someone said "microsoft will never fail "--

    I remember talking to a typesetter in 1992. He said "Im not worried about my job, no one will ever be able to make software that can typeset as well as we can".

    Uh - know any typesetters?

    Doofuses.

  1. driven

    Addicted to MacNN

    Joined: May 2001

    0

    IBM

    IBM is another example. They too had the attitude that businesses wouldn't give them up. (First the type-writer business, then the mainframe business, then the PC business ...)

    IBM is still around, but only as a ghost-like reminder of what once was.

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