MUMBAI: Yahoo! Inc. has formally rejected Microsoft Corp.’s unsolicited $44.6 billion offer, stating that it “substantially undervalues” the company.
However Yahoo! has left the door open for further negotiations.
In an official statement, Yahoo! said its board is “continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders.”
Yahoo!’s management team and financial and legal advisors unanimously concluded that Microsoft’s proposal was not in the best interests of Yahoo! and its stockholders.
Yahoo! official statement said, “Microsoft’s proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments.”
Goldman, Sachs & Co., Lehman Brothers and Moelis & Company are acting as financial advisors to Yahoo!. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to Yahoo!, and Munger Tolles & Olson LLP is acting as counsel to the outside directors of Yahoo!
Microsoft offers to buy Yahoo! for $44.6 billion