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Yahoo Rejects Microsoft's Bid |
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Yahoo Inc.
rejected Microsoft's $44.6 billion takeover bid as “inadequate.”
In its formal response, Yahoo said its board had concluded that
Microsoft's offer "substantially undervalues" the
California-based company.
Yahoo's stock price had dropped by more than 40 percent in the
three months leading to Microsoft's bid, which was valued at $31
per share when the offer was announced on February 1. The offer
Microsoft made to Yahoo represented an amount 62 percent above
Yahoo's current market value at the time.
Many analysts believe that Microsoft will eventually raise its
bid to $40 per share to secure the deal.
These two internet giants will likely merge sometime in the near
future. When this happens, Microsoft will have more power to
compete competitively with Goggle. |
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