Yahoo is set to reject Microsoft’s bid for the company, even though it will bid $31 per share for the company. Yahoo says the price, $44.6 billion, was too low for the company, and it won’t accept the bid unless Microsoft coughs up at least $40 per share.
At that price, Microsoft will need to find $51.1 billion for Yahoo – an exta $6.5 billion that what Microsoft is bidding.
If the deal was accepted, the new merged Microsoft/Yahoo would have created a competitor to the search giant Google in search and advertising.
However, Citigroup says that paying $30 to $31 per share was reasonable.
A Microsoft spokesperson declined to comment
[...] But what caught everyone’s surprise wasn’t the increase popularity of the hit gangland drama, but it was the announcement on the 1st of February 2008 (our time) when Microsoft announced that it would propose to buy Yahoo for $44.6 billion, or $31 per share, before getting rejected by the board of directors on the reason that the bid price was “too low”. [...]