Yahoo Inc., formally rejecting a $45 billion unsolicited bid from Microsoft Corp., said Monday that the offer is not in the best interest of shareholders.
"The board believes that Microsoft (MSFT, Fortune 500)'s proposal substantially undervalues Yahoo (YHOO, Fortune 500), 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," said the statement.
The rejection was not a surprise and had been expected by investors since late last week. Some believe this is part of an effort by Yahoo to get a higher sales price from Microsoft. While the offer represented a large premium from the recent pre-offer price, it only represented the price level seen for Yahoo stock in November.
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