Microsoft responds to Yahoo!'s rejection

Written by Tim Smalley

February 12, 2008 | 15:37

Tags: #acquisition #announcement #internet #merger #portal #rejection #responds #statement

Companies: #microsoft #yahoo

Yesterday evening, Microsoft issued a statement in response to Yahoo!'s announcement that it had rejected the $44.6 billion offer to buy the troubled Internet portal.

The response reads as follows:

"It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties.

We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.

A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.

The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

The last thing that anyone wants is a hostile takeover... but that's exactly what the final part of the statement implies in my opinion. Do you think Microsoft should just back off or increase its bid? Share your thoughts on the statement in the forums.
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