Microsoft Withdraws Offer For Yahoo
Representatives for Microsoft announced their decision to withdraw the offer to buy Yahoo, according to the New York Times. Microsoft’s offer was to buy Yahoo for $33 a share, or $47.5 billion. But people close to Yahoo, which previously had said they wouldn’t settle for anything less than $37 a share, see Microsoft’s decision as beneficial. However, some shareholders had favored a deal at about $34-$35 a share.
The entire board of Yahoo backed the decision but unhappiness with the companies executive decisions could spread through the company.
Yahoo defended their decision by saying that it always thought Microsoft’s offer undervalued the company, according to the Los Angeles Times.
Yahoo’s next move could be merging with its archrival, Google. Some people believe this could happen because of a previous ad test involving the others website. It is believed that talks were active between the companies during negotiations with Microsoft.
Yahoo could also initiate stock buybacks to demonstrate to shareholders that they have faith in the company. As of March 31, the company had $2.3 billion in cash and cash equivalents.