Yahoo responds- Not opposed to transaction with Microsoft, wants better deal

Posted by vasudev on April 7 2008, 7:14 PM. Posted in Microsoft Corp.

Responding to the latest Microsoft's letter which gave Yahoo three weeks to conclude the agreement, the Board of Directors of Yahoo sent the letter to Steve Ballmer saying Yahoo is not opposed to transaction with Microsoft if it is in the best interests of stockholders and wanted a better deal.

The Board of Directors of Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today sent the following letter to Steve Ballmer, Chief Executive Officer of Microsoft Corporation.

Dear Steve:

Our Board has reviewed your most recent letter with regard to the unsolicited proposal you made to acquire Yahoo! on January 31, 2008.

Our Board carefully considered your unsolicited proposal, unanimously concluded that it was not in the best interests of Yahoo! and our stockholders, and rejected it publicly on February 11, 2008. Our Board cited Yahoo!'s global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as its substantial unconsolidated investments, as factors in its decision.

At the same time, we have continued to make clear that we are not opposed to a transaction with Microsoft if it is in the best interests of our stockholders. Our position is simply that any transaction must be at a value that fully reflects the value of Yahoo!, including any strategic benefits to Microsoft, and on terms that provide certainty to our stockholders.

Since disclosing our Board's position with respect to your proposal, we have presented our three-year financial and strategic plan to our stockholders, which supports our Board's determination that your unsolicited proposal substantially undervalues Yahoo!. Those meetings with our stockholders have also provided us an ..............Continue At Source