Yahoo snubs Microsoft

Yahoo! has turned down Microsoft’s 22.4bn bid, saying it is “too low”. The bid valued Yahoo! at 62% more than its share price on January 31, the day the offer was made.

Yahoo! has turned down Microsoft’s £22.4bn bid, saying it is “too low”. The bid valued Yahoo! at 62% more than its share price on January 31, the day the offer was made.

The search engine is instead reported to be considering other options. It is thought to have restarted merger talks with AOL or even a possible tie-up with Google or Walt Disney. Google has a 5% stake in AOL.

Analysts have said that the deal with Google could go ahead if Yahoo! allows Google to handle searches on Yahoo’s site in exchange for a split for the advertising revenue. An option that several investors have called for as Google’s share of search continues to rise, while Yahoo’s slides.

Meanwhile no alternate bidders have emerged and analysts had been betting that the likeliest outcome was for Yahoo’s board to negotiate for a higher price from Microsoft. Some expect that this could force Microsoft to attempt a hostile take-over.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here