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
Yang Justifies Rejected Microsoft Bid
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, betting that it can elicit a higher offer from the world's largest software maker or find another...   (Associated Press)

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. (Read more Yahoo stories.)

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