Yahoo Holds Out Against Microsoft

Yahoo continues to hold out against Microsoft’s buyout offers, rejecting the $31-per-share offer on Monday (04.07). Microsoft initially made the offer public on February 1, but Yahoo founder/exec Jerry Yang and chairman Roy J. Bostock wrote that the offer “substantially undervalues” the company. For its part, Microsoft has claimed that it hopes for a “friendly transaction”, but also has threatened to bypass execs and take a lesser proposal directly to the company shareholders. Yahoo believes its shareholders agree that the Microsoft deal is too low, citing one reason as the recently-diminishing value of Microsoft’s own stock. But Microsoft CE Steve Ballmer writes that the high premium Microsoft is offering is actually more considerable for Yahoo now that the market, both overall and for Internet-based companies, has weakened considerably in the past months. The Microsoft offer is a 62% premium over Yahoo’s closing January stock price.