Yahoo!(YHOO) on Monday officially rejected Microsoft's(MSFT) buyout offer, saying the proposal "substantially undervalues" the Internet-search company.
Yahoo! said its board has reviewed the unsolicited offer with its management team and financial and legal advisers, and unanimously concluded that the bid, valued at $44 billion at the time it went public, isn't in the best interest of shareholders. "After careful evaluation, the Board believes that 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! said in a statement. The company said its board is continually evaluating all of its strategic alternatives. Microsoft, seeking to create a search giant worthy to rival Google(GOOG), went public with a $31-a-share proposal for Yahoo! on Jan. 31. The proposed deal would be Microsoft's biggest-ever purchase and would reshape the tech landscape. Several reports over the weekend indicated that Yahoo! would reject the bid unless it was substantially increased.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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