Update: Yahoo rejects M$ Offer! (was Re: M$ + Yahoo = Disaster for Y! Users)

[Leo Mauler]

"Yahoo rejects Microsoft buyout offer as undervalued"

http://news.yahoo.com/s/afp/20080211/ts_afp/usitcompanytakeovermicrosoftyahooreject

Also: http://tinyurl.com/yoohur

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" '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,' Yahoo said in a
statement."

"As a result, the board 'concluded that the proposal
is not in the best interests of Yahoo and our
stockholders.' "

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"Wording of the rejection by Yahoo suggests that the
company is holding out for a better price, and
guarding against potential lawsuits from stockholders,
according to analysts."

" 'Right now they are haggling,' Silicon Valley
analyst Rob Enderle told AFP. 'Yahoo is not saying no
at any price. They are saying the Microsoft offer is
not strong enough.' "

"It is common for companies to rebuff initial buyout
offers and hold out for sweeter deals."

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"But Yahoo chief executive Jerry Yang sent a message
to employees last week, assuring them the firm's
leaders were exploring ways to avoid a Microsoft
takeover."

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