Yahoo Says No, Microsoft Says Come On Baby Please

Yahoo has told Microsoft “no” to their bid to acquire the internet company, but the boys in Redmond are not going to sit idly by. Microsoft may take its offer to the shareholders, which they believe offered great value to Yahoo. MS could also go into a proxy fight get rid of the current board of directors who denied their “full and fair” offer of $44.6 billion. There sure does seem to be a lot of bullying going on around here.

The Yahoo board issued a statement saying: ”Microsoft’s proposal substantially undervalues Yahoo! Including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments.”

Yahoo wants about $40 per share, or $56 billion. A number that would be tough for Microsoft to meet, as they already would have to use debt for the initial offer. We’ll see what happens next for Microsoft on this deal. Will they move forward aggressively and go after the board…or do they call it quits. All I know is that it’s funny how like a pack of ravenous dogs near a wounded deer companies can get. They see weakness and head straight for the neck on the “easy” kill.