Microsoft has been repeatedly trying to engage Yahoo's board in discussions since its bid for the company.
Microsoft negotiations with Yahoo have stalled as the bid for the search engine giant might be a matter of worth. The software maker is now evaluating its bid for search engine giant since the market has deteriorated and changes which may have brought down its value.
By Scott Ramsey
Apr 4, 2008 23:31 PM GMT
Microsoft is reportedly evaluating its bid for search engine giant, Yahoo Inc, because the Internet company may have lost value since its initial offer was made on January 31. Yahoo has rejected Microsoft's offer saying it "substantially undervalues" the search engine company. Microsoft's initial bid valued Yahoo at $44.6 billion, but is currently worth about $42 billion.
The software maker has been repeatedly trying to engage Yahoo's board in discussions since its bid for the company. The Redmond, Washington company would like nothing more than to have large shareholders in Yahoo calling the board and management begging them to take the expected deal. Microsoft knows Yahoo has no other options, or they would be apparent by now.Recent reports suggest that Microsoft is growing more frustrated with the Yahoo board's refusal to engage in formal negotiations even amid widespread perception that the Internet company's business has been deteriorating. However, the market has deteriorated and changes in Yahoo's business strategies may have dragged down its value below Microsoft's bid. Shares of Yahoo fell 5 percent, $26.81 in extended trading after closing Friday's session. Microsoft rose 16 cents to close at $29.16.
|
