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
recently.
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 underÂvalues
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.