New York, February 11 - Yahoo! today rejected the $44.6-billion takeover offer of software giant Microsoft saying the bid “substantially undervalues the company, including its global brand and worldwide audience”.

Microsoft on February 1 had made an unsolicited $44.6 billion in cash and stock takeover bid to Yahoo!. Microsoft had offered $31 per share.

The board of directors of Yahoo!, after carefully reviewing Microsoft’s offer with the company’s management team, financial and legal advisers concluded that the proposal is “not in the best interests of the firm and its stockholders”, Yahoo! said in a statement today.

“After careful evaluation, the board believes that Microsoft’s proposal substantially undervalues Yahoo!, including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments,” the statement said.

Microsoft is pursuing the Internet firm for a competitive edge in the fast growing online search advertising market, which is dominated by Google.

Source : Tribuneindia.com

Spread the word: related/bookmark it/readit