RSS feed Get our RSS feed

News by Topic

BizReport : Internet : February 10, 2008

Yahoo tells Microsoft $44.6 billion not enough

Reports are circulating of a letter from Yahoo, to be made public on Monday, rejecting Microsoft’s buy-out bid of $31 a share. Why? It would appear they're hanging out for more money.

by Helen Leggatt

yahoo%20logo.jpgYahoo isn’t happy with the $44.6 billion buy-out bid offered by Microsoft, according to reports currently circulating, including on Bloomberg and the New York Times.

Unhappy with the $31 a share offer, Yahoo appears to be holding out for around $40 a share, despite recent financial struggles. This would mean an increase in Microsoft’s bid of around $12 billion.

“A lot of this is gamesmanship on the part of Yahoo,'' said Scott Kessler, an equity analyst at Standard & Poor's in New York, via Bloomberg.

“Microsoft is well aware that Yahoo doesn't have any other options. What this is about is how much Microsoft wants Yahoo and how much time they're willing to wait to get this deal done.''

Some industry analysts believe Yahoo could explore new business strategies including, they speculate, outsourcing its search-ad functions to Google.

Tags: buy out, Microsoft, Yahoo

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.