The world no.1 software giant in terms of website ranking and popularity has reportedly rejected the top management software firm Microsoft Corp’s revised proposal on Saturday quoting, “the bid is not enough for acquisition”, official reports said.
The Microsoft has been trying to convince Yahoo’s top management to get hold of the giant firm since last three months. For the second time Yahoo rejected Microsoft’s proposal; earlier it (Yahoo) has rejected Microsoft’s proposal in February when Microsoft has offered to purchase Yahoo at US$31 per share translated into US$44.6-billion.
After, rejecting the offer, Yahoo had raised its asking price to $37 per share, but Microsoft on May 03 has proposed $33 a share, a 70% premium to its original offer of US$31 a share, which would be transformed a total of US $47.5-billion.
Rejecting MS’s offer, Yahoo co-founder and Chief Executive Officer (CEO), Jerry Yang has alleged Microsoft to evaluate Yahoo’s market price cheaper and to adopt the anti-acquisition path for declining the market value of Yahoo.
“With the distraction of Microsoft's unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximize our potential to the benefit of our shareholders, employees, partners and users,” Yang said
On the other hand, Microsoft CEO Steve Ballmer said that we would not carry on the attempt to convince Yahoo. After raising the price value, from US $31 to US $33 per share, Microsoft is not going to increase the price value.
In a release statement, Ballmer said, “After careful consideration, we believe the economics demanded by Yahoo do not make sense for us, and it is in the best interests of Microsoft shareholders, employees and other stakeholders to withdraw our proposal.”
However, experts believe that Microsoft can do another attempt to purchase Yahoo, but this time, it would offer the price to Yahoo’s stakeholders and also proposed them to hand over the Yahoo’s management seat to Microsoft. “That’s why; Yahoo is delaying its General Body meeting that is scheduled in July this year”.
“The rebuff of this deal might be proved unprofitable for both of these companies” as the main aim of Microsoft was to surpass, another internet search engine giant Google far behind, which is emerging the fastest growing software company in the globe’, as expert predicts.
Likewise Microsoft’s walk out from this three-month-old bid has certainly brought down Yahoo’s stock. Yahoo stock had an upper hand since the deal first came up three months back but as per the latest report its stock price in Nasdaq index has fallen down to $28.67, a fall of $6.09 or 21 percent. With this it would be interesting to see Yahoo’s market strategy to contain the fall in coming days.
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