Yang Justifies Rejected Microsoft Bid

Says Yahoo uniquely positioned in growing online ad market
By Nick McMaster,  Newser Staff
Posted Feb 14, 2008 2:07 PM CST
This combination of two file photos shows Microsoft CEO Steve Ballmer, left, and Yahoo CEO Jerry Yang. Yahoo Inc. on Monday, Feb. 11, 2008 spurned Microsoft Corp.'s $44.6 billion takeover bid as inadequate,...   (Associated Press)
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(Newser) – Jerry Yang believes Microsoft’s $44.6 billion bid for Yahoo was too low because it does not take into account the company's “unique position” in the growing online advertising market, the New York Times reports. In a letter sent to shareholders today, Yang inventoried Yahoo’s advantages: its widely-known name, its monthly traffic of 500 million visitors, and its dominance of the display ad market.

“The global online advertising market is projected to grow from $45 billion in 2007 to $75 billion in 2010. And we are moving quickly to take advantage of what we see as a unique window of time in the growth—and evolution—of this market,” Yang wrote. Although it rejected Microsoft’s initial bid, many analysts are convinced that Yahoo will inevitably sell—it’s just a matter of at what price.