Microsoft Not To Raise Bid For Yahoo!

Chief Executive Officer of Microsoft Corp, Steven Ballmer was adamant and refused to raise its $44.6 billion offer for Yahoo! Inc. The CEO of Washington-based Microsoft said, “We know what Yahoo is worth to us. We offered a lot of money: $44 billion. It is not a lot of euros anymore. If their board thinks that's fair, great. If not, we'll move forward,"

Ballmer did clarify as to what he meant by ‘moving forward’. He however clarified that Microsoft would not make a bid for Google primarily for regulatory reasons.

Yahoo! has four days before Microsoft's deadline to agree to its offer or face a hostile takeover fight and risk a lower bid. Earlier Yahoo! had rejected Microsoft’s offer and had argued that it's worth more than the $31 a share in cash and stock that the latter offered. Yahoo! management and directors have said Microsoft's cash-and-stock offer "significantly" undervalues their company.

Meanwhile, Yahoo! also announced its first-quarter financial results on April 22nd. These results were closely watched as these could make a statement in themselves and coax Microsoft for a higher bid. Revenue, excluding the amount paid to advertising partners, rose to $1.35 billion. That beat forecasts of $1.32 billion.

After the results, CEO and co-founder Jerry Yang reinforced that the Microsoft bid was low and said, "The quarter's results underscore the fact that our strategy and investments are beginning to pay off. Our board and management are committed to choosing a path to maximize stockholder value and will not enter into any transaction that does not recognize the full value of this company."

Are these results good enough to compel Microsoft shell out a higher amount? At least Steven Ballmer does not think so. He has already threatened to take the proposal straight to shareholders if Yahoo doesn't agree to its terms by April. 26. Prior to the declaration of the results, e had said, "I wish Yahoo all the success with its results, but it doesn't affect the value of Yahoo to Microsoft."

Microsoft fell 17 cents, or 0.6 percent, to $30.25 in Nasdaq Stock Market trading yesterday. The shares have fallen 15 percent this year. Yahoo fell 1 cent to $28.54 yesterday and the stock has risen 23 percent this year.

Source- TheMoneyTimes