Yahoo rejects Microsoft’s offer

Posted by multippt

Looks like Yahoo decided to reject Microsoft’s offer of $44.6 billion. The deal came surprisingly 1 week ago, and is perceived as “hostile” by many Internet users. The primary reason why Microsoft’s offer was rejected was that its deal is not high enough.

Yahoo also believes that Microsoft is attempting to make use of the recent slide in Yahoo’s share prices to “steal” the company. If compared to 6 months ago, Microsoft’s deal would not be even close to the market shares Yahoo was having. Yahoo is thus very unlikely to accept any offer below $40 a share, which is a lot more than the $31 a share Microsoft is offering.

However, even if Yahoo were to reject the offer, Yahoo does not seem to be in a good position to compete Google. Having lesser funds and talent to compete against almighty Google (a position Yahoo once held until Google came along). Thus, Yahoo is considering other scenarios to keep its independence, such as coming up with an advertising partnership with Google.