Yahoo Rejects Microsoft Bid

Web giant says unsolicited bid 'massively undervalues' worth
By John Johnson,  Newser Staff
Posted Feb 9, 2008 11:56 AM CST
This combination of two photos shows Microsoft founder Bill Gates, left, and Yahoo CEO Jerry Yang. Yahoo will reject Microsoft's offer to acquire the web giant. (AP Photos)   (Associated Press)
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(Newser) – Yahoo's board will reject Microsoft's $44.6 billion bid to acquire the company because it "massively undervalues" Yahoo, the Wall Street Journal reports. The board will spell out its objections in a letter to Microsoft on Monday. Yahoo says the $31-per-share offer isn't high enough and worries about entering a deal that could eventually be overturned by regulators.

The move signals that Yahoo is preparing for a long takeover battle, the Journal notes. It quotes an unnamed source as saying that Yahoo probably wouldn't accept any per-share offer under $40. That would require Microsoft to raise its bid by about $12 billion, an uncertain prospect.