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