Yahoo formally reject Microsoft offer

Internet media giant Yahoo has now formally rejected the Microsoft’s offer for a possible acquisition.

The company said that the offer price of $41.6 billion is too low. Microsoft would now have to either enhance their offer or adopt a hostile approach if they want to continue this effort to acquire Yahoo.

Microsoft has also now responded to this rejection by calling their original offer as fair. The company has however not rejected the idea of enhancing the value of the offer.

The software giant added that they have the right “to pursue all necessary steps”. They just might go ahead and take their bid straight to the investors in the company who might be more willing for this deal to go through.

Chief Executive Jerry Yang spoke about the rejection of Microsoft’s offer: “The proposal is not in the best interests of Yahoo and our stockholders. We believe Microsoft’s proposal substantially undervalues Yahoo.”

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