Yahoo! to Reject Microsoft’s Generous Bid?

05sofrt.xlaerge1 According to the Wall Street Journal, Yahoo!’s board has decided that Microsoft’s $31-per-share offer “massively undervalues” the company. The expectations are that Yahoo! will reject Microsoft’s offer. Is Yahoo! being greedy? There is talk that Yahoo! might instead consider an offer of at least $40 per-share.

If this information holds true and Yahoo! is truly playing some “hardball”, this puts them in a very dangerous position. There is a possibility that Yahoo! could force Microsoft into a “proxy fight” to replace the board before getting Yahoo! shareholders to vote on the offer at hand. CNET’s News.com reports as of 11 a.m. PT on Saturday, representatives from both Yahoo! and Microsoft declined to comment on the report. We, shall see in the following days what truth, if any, comes of this news. Would Yahoo! really chance loosing their chance to become neck, and neck with Google?

Update: It has been confirmed, as of Monday morning, that Yahoo! has rejected Microsoft’s bid of $44.6 billion.

[Via News.com]

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