World News: Yahoo! rejects Microsoft's offer

World News:  Yahoo! rejects Microsoft's offer

After careful review of Microsoft’s unsolicited proposal to acquire the company, Yahoo! has rejected Microsoft’s proposal, saying it is not in the best interests of Yahoo! and its stock

After careful evaluation, the board believes that Microsoft's proposal substantially undervalues Yahoo!, its global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as its substantial unconsolidated investments.

In a letter to stockholders, Yahoo! pointed out that its assets – its brand and its audience, its relationships with marketers, financial strength, technology, and strategic investments – are the core of the company’s value and leadership position in the industry.

“We have a huge market opportunity – and are uniquely positioned to capitalise on it. The global online advertising market is projected to grow from $45 billion in 2007 to $75 billion in 2010. And we are moving quickly to take advantage of what we see as a unique window of time in the growth – and evolution – of this market to build market share and to create value for stockholders.

“Today, Yahoo! is a faster-moving, better-organised, more nimble company than it was just a few months ago. We have redeployed our resources to drive Yahoo!'s key strategic priorities – taking important steps to streamline our organisation and close down or scale back businesses that don't support these critical growth initiatives. We are well on our way to transforming the experiences of Yahoo!'s users, advertisers, publishers and developers – an important shift that is at the heart of our plan to create stockholder value.”


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