Microsoft stands firm as Yahoo! results beat forecasts

23rd April 2008

Yahoo! has announced prediction-beating third-quarter earnings, but there is said to be little chance of Microsoft raising its offer for the web pioneer.

Jerry Yang, the company's co-founder and chief executive, said that the $542.2 million earnings announced on Thursday were "extraordinary".

The 37 cents per share results for the first three months of 2008 more than triple its profit for the preceding quarter.

However, analysts - echoing sentiments expressed by Microsoft's chief executive Steve Ballmer before the announcement - are doubtful that the software giant will raise its $31 per share bid.

"This isn't going to make Microsoft come and out offer $35," Canaccord Adams analyst Colin Gills told the Associated Press.

Mr Ballmer has previously told Reuters that he wished Yahoo! the best of luck but the Microsoft offer would not change, regardless of the results.

The Silicon Valley search leader has also been in discussions with Time Warner over a possible deal with AOL and Rupert Murdoch's News Corporation.