Yahoo To Reject Microsoft Offer

If you’ve been following the tech world lately then you know that Microsoft had made an unsolicited bid to purchase Yahoo. One giant purchasing a much smaller giant while another Giant stood on the sidelines hoping it fell apart.The giant I am referring to is Google. Google was the most vocal opponent of this merger and was quite outspoken about it’s opinion on the subject. They were not in any way looking forward to seeing an industry giant like Micrsoft acquire the 2nd largest search portal on the internet.

They must have sent out enough bad voodoo to get the deal nixed though as Yahoo insiders have announced that the company plans to reject the offer from Microsoft. This may be a ploy to get Microsoft to up their offer or more than likely they simply don’t want to end up being the latest acquisition.

This decision could lead to a showdown between two of the world’s most prominent technology companies. Google already has offered to help Yahoo avert a takeover and urged antitrust regulators to take a hard look at the proposed deal.

If Microsoft wants Yahoo badly enough, they could try to override Yahoo’s board by taking its offer — originally valued at $31 per share — directly to the shareholders. This is known as a hostile takeover and pursuing that route probably will require Microsoft to attempt to oust Yahoo’s current 10-member board.

Rather than playing Genghis Khan and taking them by force, many analysts believe Microsoft is prepared to offer as much as $35 per share for Yahoo, which still boasts one of the Internet’s largest audiences and most powerful advertising vehicles despite a prolonged slump that has hammered its stock.

Disclosure: I don’t own either Yahoo or Microsoft stock but I do have a position with Google.

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