Acquisitions

Yahoo´s board of directors formally rejected offer from Microsoft Corp. at a meeting in New York claiming that $43,7 billion, which is $31 per share, is not enough for such a renowned Internet company and so merger agreement is out of the question for now at least. Yahoo´s Chief Executive Officer Jerry Yang believes that 14 years of work on the company are worth more and the offer doesn´t take into account risks Yahoo would go through by entering this agreement. When Microsoft announced the bid at the end of January its share price has fallen while on the contrary that of Yahoo has risen. But after the rejection of the initial offer it was the share price of Yahoo that dropped more than 23 percent to $22. On the other hand Microsoft share price went up 4.3 percent. As a result CEO Jerry Yang faces criticism from Yahoo´s shareholders. “Clearly there´s a frustration,” said Darren Chervitz from the Jacob Internet Fund that owns stocks of the company. “I am not even sure if Yahoo cares about its shareholders because they didn´t show much regard for shareholders´ best interests in this process.” “You are going to see a lot of shareholders just throwing in the towel because they are going to realize it´s going to take a while for the stock to get back to where it was Friday,” added analyst for Standard & Poor Scott Kessler. Merger between Yahoo and Microsoft would definitely create a powerful entity in online search business, which currently Google dominates. And it would be also one of the biggest deals in the technological field in quite some time together with Hewlett-Packard´s takeover of Compaq in 2002, where the latter one was bought for $25 billion. Jerry Yang announced that Yahoo is currently examining its options and possibly considers a partnership with Google Inc. or get a higher offer from Microsoft.

related story: http://news.yahoo.com/s/ap/microsoft_yahoo;_ylt=AubI643iGJoSP6sLTChXmdis0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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Edited by: Katarina Zerzanova

Labels: Acquisitions, CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom

# posted by Blog TechSource @ 1:30 AM