UK Search Engine Marketing Agency
Yahoo set to reject Microsoft offer
Search engine Yahoo has decided to reject Microsoft’s $44.6bn US dollar (£22.4bn) offer for the company, according to reports.
Microsoft made the takeover offer 10 days ago in a bid to challenge the dominance of internet search engine giant Google.
However, the Wall Street Journal reports that Yahoo!'s board is ready to reject the $31 a share (£15.92) offer as ‘undervaluing’ the business. The board is unlikely to consider any offer below $40 per share.
Microsoft's $31 a share offer was 62% above the level at which Yahoo's shares were trading at the time, but now the search engine’s shares are trading at around $29.20.
Microsoft's approach came a year after the two companies held talks over a possible merger to make the two companies more competitive with Google in the online search and advertising market.
Yahoo! rejected the proposals at the time because it hoped that a restructure of its business would enable it to get back on track. However, Yahoo announced disappointing results last month, and Microsoft believes that the deal is the only way to compete effectively with Google.
The board at Yahoo has been considering other options, including a search advertising partnership with rival Google.
