Yahoo! Rejects Microsoft Offer

by Gary on February 11, 2008 · 1 comment

in News

Yahoo’s decision is out. According to Yahoo! “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.” Some Yahoo! shareholders do not agree with this assessment though and think that the $31-a-share bid is actually generous.

With no Yahoo! stocks to think about though, what’s clear is that we can start focusing on our SEO projects again and stop obsessing about the possible Yahoo!-MSN merger and its effect on the search scene. If you feel like dissecting the might-have-beens though all you need is to Google (^_^) any variation of the Yahoo!-MSN merger to find opinions all over the blogosphere.

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Mark February 12, 2008 at 2:25 pm

On it being the “merge(r)” of the century — possible, but not always a good thing. The industry has seen many other big mergers that did not bear fruitful results. AOL – Time Warner anyone?

How this affects the search engine industry is that now Microsoft is put in a difficult position. By offering to buy Yahoo they admitted that they could not put a good fight with Google. Yahoo could have been their salvo, but now that Yahoo has “rejected” their bid, they’re put in a very difficult place.