Breaking News: Yahoo! to reject Microsoft bid
According to the Journal, the Yahoo! board determined that the $31 per share price significantly undervalues the Yahoo! brand. The board is also reportedly planning on sending a formal letter to Microsoft on Monday explaining their position.
So what now? Well, the Journal is reporting that sources close to the board are not going to hold out for anything under $40 a share, an increase that would add $12 billion to Microsoft's offer. The thinking is that Microsoft won't be willing to pay that much, and the alternative, a hostile bid, would be too detrimental to the company's overall value, as board members and key employees would quit.
In the last week, Yahoo! has entered talks with Google about possibly using their search advertising technology and has been in discussions with other companies as well.
Our thought? If Microsoft really wants something, another $12 billion or having to oust the board isn't going to be enough to keep them away.
We'll keep you updated as the story progresses.