$44.6 billion just isn't enough these days
We suspected as much but Yahoo! Inc. has today officially turned down Microsoft's acquisition proposal.
On February 1st, Microsoft offered $44.6 billion for the acquisition of Yahoo!, one of the largest takeover bids you're ever likely to see.
Yet, following a week of thought, Yahoo! has announced that its board of directors "has carefully reviewed Microsoft's unsolicited proposal with Yahoo!'s management team and financial and legal advisors and has unanimously concluded that the proposal is not in the best interests of Yahoo! and our stockholders".
We're not entirely sure if the stockholders will find a rejection of $44.6 billion to be in their best interests, but Yahoo! seems adamant.
A statement from the official Yahoo! press release reads:
"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 Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximise value for all stockholders."
Sorry Microsoft, looks like this one is a no-go for now. Mind you, it could also just be a polite method for Yahoo! to say "well, we're kinda interested but how about a few more billion please Bill?".
We'll be eagerly awaiting a reply from Microsoft CEO, Steve Ballmer, who has no doubt removed yahoo.com as his default homepage.
Official press release: Yahoo! Board of Directors Says Microsoft's Proposal Substantially Undervalues Yahoo!
