Microsoft not interested in Yahoo bid

DQW Bureau
New Update


Microsoft Corp is prepared to walk away from its $43.6 billion bid for Yahoo

Inc if the two sides can't agree on a price, Steve Ballmer, CEO, Microsoft said


Speaking at a technology conference near Milan, Ballmer said Yahoo's

better-than-expected first-quarter results, have not changed Microsoft's view of

Yahoo's value.

Microsoft sees Yahoo as a way to compete with arch-rival Google Inc in the

Internet search and advertising arena, but it has limits to what it is willing

to pay to get a deal done.


“We're prepared to move forward without a merger with Yahoo. We think the

best way to move forward quickly (and gain critical mass against Google) is to

come together with Yahoo,” Ballmer said In that letter, Ballmer set a deadline

for Yahoo's board to accept a deal with Microsoft or face a lower bid that

Microsoft would take directly to Yahoo's shareholders. Yahoo's board of

directors has said Microsoft's cash-and-stock offer significantly under­values

the company.

The value of Microsoft's offer for Yahoo has fallen to $30.36 a share from

$31.00 because of a decline in Microsoft shares. In order to regain the bid's

full value, Microsoft's stock would have to rise to $32.60, the closing share

price on Jan. 29, a day before Microsoft presented its unsolicited offer to

Yahoo's board.

Shares of Microsoft were up 98 cents, or 3.24 percent, to $31.23 in afternoon

Nasdaq trade. The company is to report its results for the March quarter. Yahoo

shares were below Microsoft's offer, down 46 cents to $28.08 on the Nasdaq.