updated 04:00 pm EST, Thu February 28, 2008
Yahoo report: MS offer
Yahoo has said in a report filed with U.S. regulators that Microsoft's recent bid to purchase the company is a distraction, and warned investors of such. Microsoft offered to purchase Yahoo for $44.6 billion on February 1st, but Yahoo officially rejected the bid just 10 days later. Yahoo's annual report to the U.S. Securities and Exchange Commission states that Microsoft's proposed deal could continue to distract the company as well as its management, according to Reuters.
A major Yahoo investor pleaded with Microsoft on February 12th, asking the software giant to raise its bid in an effort to close the deal. Yahoo CEO Jerry Yang personally reassured investors the following day, claiming that Yahoo is positioned to increase its value by around 60 percent by 2010. Numerous company shareholders disagreed, however, and filed a suit against Yahoo, claiming that the company failed to enter into substantial negotiations with Microsoft. Yahoo's board of directors was also said to be torn, pitting those seeking profit against others -- including Yang -- who could act out of emotion to stave off Microsoft's offer.