Yahoo to reject Microsoft’s current bid
When Microsoft announced its intention to take over Yahoo, CEO Steve Ballmer said that Microsoft had been in ?on and off? acquisition talks with Yahoo for about 18 months. He said that he ?thought long and hard about? purchasing Yahoo and believes in a Yahoo that is integrated into Microsoft ?more than ever.? He considered the $44.6 billion as an offer that Yahoo should ?seriously think about?. Your guess is as good as ours on whether Microsoft will increase its offer to $57 billion, but it is clear that Microsoft that there are very few companies out there that can help Microsoft to decrease the distance to Google in online search and advertising. Yahoo obviously has leverage in these negotiations.
Talks have already started stating that Yahoo is avoiding Microsoft’s offer, and are pursuing alternatives. “Our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape,” said Yahoo Chief Executive Jerry Yang.