From The New York Times:
“After careful evaluation, the board believes that Microsoft’s proposal substantially undervalues Yahoo including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments,” the company said in a statement.
[If Microsoft decides to continue to pursue Yahoo it] may have an easier time than it could have had two weeks ago: since then, millions of Yahoo’s shares have traded hands to short-term-oriented hedge funds that typically favor a quick sale, as opposed to value investors who hold shares for the long term.
Microsoft could also decide to make an offer directly to shareholders, called a tender offer, which would put more pressure on Yahoo’s board to negotiate. At the same time, Microsoft could also set a deadline for its bid, known as an “exploding offer.”
And if Microsoft decides to make this a nasty battle, it could start a proxy contest to oust Yahoo’s board at its next election; it would have until March 13 to nominate a new slate of directors.
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Found this article from Engadget.com that follows this article
Sure, the folks at Microsoft didn't get their grubby mitts on Yahoo! (yet), but at least they picked up a little something for their mobile division, namely: Danger. According to news just crossing the wires, the monolithic company has picked up the Sidekick-creators for an undisclosed amount, and will subsequently fold the phone-maker into its mobile wing. Is there a Windows Mobile version of the Hiptop in our future? Survey says yes
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