Word is out: Yahoo plans to reject Microsoft bid

E-WAR IS ON: Google and rest of web world wait with bated breath as Yahoo is scheduled to answer Microsoft.

ibnlive.com is on mobile now. Read news, watch videos
be a Citizen Journalist. Log on to m.ibnlive.com NOW!

Related Stories

Top Headlines

Top Videos

Most Popular

• Pranab has promises to keep in Budget of hope 

• Budget and you: How policies impact your life | Secrecy Cordon around the Budget 

• Youth shot dead by cops had 26 injury marks 

• Varun fears threat to life; Maneka slams Govt 

• CNN-IBN debate: Homosexuality vs Indian morality 

• CPI-M Central Committee to act to curb Kerala infights 

• Kargil victory was certain: ex-army chief | Pay Tribute 

• British Islamic group plans coup in Pakistan: report 

• Scrap EVMs, let's go back to ballot, says Advani 

• Shiney denies he had sex with domestic help 

• Pranab has promises to keep in Budget of hope 

• Youth shot dead by cops had 26 injury marks 

• Kargil victory was certain: ex-army chief 

• Bollywood stars sizzle at the IIFA fiesta 

• IBNFocus: TDS process simplified 

• No minister contacted Madras HC judge: CJI 

• Scrap EVMs, let's go back to ballot, says Advani 

• CNN-IBN debate: Homosexuality vs Indian morality 

• Watch: Parties react to HC judgement on gays 

• Railways fail to provide basic facilities to passengers 

• Michael Jackson to be buried without his brain 

• Scrap EVMs, let's go back to ballot, says Advani 

• Shiney denies he had sex with domestic help 

• British spy chief's cover blown on Facebook 

• British Islamic group plans coup in Pakistan: report 

• Youth shot dead by cops had 26 injury marks 

• Kargil victory was certain: ex-army chief 

• Varun fears threat to life; Maneka slams Govt 

• Kambakkht Ishq is not vulgar or offensive: Akshay 

• No minister contacted Madras HC judge: CJI 

Photogallery

Find us on Facebook | Join IBNLive community

Stay ahead with G-Talk Buddy | Click now!

San Francisco: Yahoo Inc.'s board plans to reject Microsoft Corp.'s $44.6 billion (€30.73 billion) bid to buy the Internet pioneer, the Wall Street Journal reported on its Web site Saturday.

Board members concluded the unsolicited offer massively undervalues the company, a person familiar with the situation told the newspaper.

The $31 per share bid was made public on Feb. 1. Board members so far would only say they were studying the offer.

Yahoo's board intends to send a letter to Microsoft on Monday explaining its decision, persons close to the company said.

Microsoft and Yahoo representatives did not immediately return calls for comment.

The slumping Internet company's rejection of the offer might mean Yahoo is getting ready for a long battle, analysts said.

Board members believe Microsoft is attempting to take advantage of a recent slump in share price to take over. But they are not ready to consider any offer below $40 per share, according to a person knowledgeable about the discussions.

Yahoo appears to be counting on Microsoft's reluctance to engage in a hostile takeover.

Ignoring the wishes of management and the board and creating resentment among the Web giant's engineers could also make it harder to push the deal past authorities, as Yahoo officials could try to convince regulators that the deal is anticompetitive.

But analysts are uncertain whether Microsoft would be up to paying the higher price per share, which would raise its bid by about $12 billion (€8.27 billion).