Yahoo! turns down Microsoft

12th February 2008

Search engine Yahoo! has turned down Microsoft's takeover bid, stating that it is not in the interests of the firm or its shareholders to accept.

Microsoft bid £22.4 billion pounds for the company, an offer which Yahoo! claims "substantially undervalues" its worth.

The tender valued Yahoo! at 62 per cent more than its share price on January 31st, the day the offer was made.

"The board of directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximise value for all stockholders," Yahoo! explains.

A number of search marketing experts had claimed that should the merger go ahead, search and display advertising could be reduced in price for marketers, reports DMNews.

Tim Schaden, chief executive at search marketing firm Fluency, told the news source that Microsoft had a history of offering competitive prices and keywords could lower in cost.

Microsoft's bid valued Yahoo! at 62 per cent more than its share price on January 31st, the day the offer was made.