Last week, you might recall, Microsoft put in a $44.6 billion bid for Yahoo, stirring up fathers all through the computingand business worlds. That left the ball firmly in Yahoo’s court, and now, it appears, they’ve come up with a reply. According to a number of news agencies and newspapers,Yahoo’s is set to say no to the offer. Microsoft has offered $31 a share, although that was far higher than the trading prices of Yahoo’s shares. But the speculation is that Yahoois unlikely to consider any offer that’s under $40 a share, the Wall Street Journal has reported – a figure it hasn’t reached for two years. As a result of the offer, Yahoo’s shares have risen, closing at $29.90 on Friday, while, conversely, Microsoft’s have fallen by 12%. That would seem to indicate that people thinkit’s either too big a move for the Redmond giant, or one that would take them away from the true focus of their business. Certainly, the knock-on effect is to lower Microsoft’s offer inreal terms, to a paltry $41.8 billion.
[Update; It's official, Yahoo has formally rejected Microsoft's unsolicited merger proposal, finding it "substantially undervalues" Yahoo and its brand. Yahoo's board did not elaborate how the company's management plans to turn the company around; Yahoo has been working a restructuring plan for the last 18 months which has yet to yield significant results.
