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| Version 4 | Version 5 |
|---|---|
| Yahoo rejects Microsoft approach | Yahoo rejects Microsoft approach |
| (10 minutes later) | |
| Yahoo has rejected a takeover bid worth more than $40bn (£20.5bn) from software giant Microsoft because it is too low. | |
| Yahoo said the offer "substantially undervalues" the company and is not in shareholders' interests. | Yahoo said the offer "substantially undervalues" the company and is not in shareholders' interests. |
| Microsoft's offer was worth $31 a share, 62% above the level at which Yahoo stocks were trading when the offer was made on 1 February. | Microsoft's offer was worth $31 a share, 62% above the level at which Yahoo stocks were trading when the offer was made on 1 February. |
| A merged Microsoft and Yahoo would be one of the biggest technology firms, and would rival industry leader Google. | A merged Microsoft and Yahoo would be one of the biggest technology firms, and would rival industry leader Google. |
| This is so important from Microsoft's perspective there's a very good chance there will be more money on the table Ian Maude, Enders Analysis | This is so important from Microsoft's perspective there's a very good chance there will be more money on the table Ian Maude, Enders Analysis |
| As it rejected the Microsoft offer, Yahoo said that the deal undervalued its brand, audience, investments in advertising platforms and future growth prospects, free cash flow and earnings potential. | As it rejected the Microsoft offer, Yahoo said that the deal undervalued its brand, audience, investments in advertising platforms and future growth prospects, free cash flow and earnings potential. |
| The company said that its board of directors was continually evaluating all of its strategic options. | The company said that its board of directors was continually evaluating all of its strategic options. |
| "Right now they are haggling," said technology analyst Rob Enderle. | "Right now they are haggling," said technology analyst Rob Enderle. |
| "Yahoo is not saying no at any price. They are saying the Microsoft offer is not strong enough." he added. | "Yahoo is not saying no at any price. They are saying the Microsoft offer is not strong enough." he added. |
| A source quoted by the Wall Street Journal said that Yahoo's board would be unlikely to consider anything below $40 per share. | A source quoted by the Wall Street Journal said that Yahoo's board would be unlikely to consider anything below $40 per share. |
| A $40 a share offer would be a 109% premium to the $19.18 closing price of Yahoo's shares the day before the original offer was announced. | A $40 a share offer would be a 109% premium to the $19.18 closing price of Yahoo's shares the day before the original offer was announced. |
| Yahoo's shares have not traded above $40 for two years. | Yahoo's shares have not traded above $40 for two years. |
| Online advertising | Online advertising |
| Analysts say Microsoft is likely to come up with an improved offer. | Analysts say Microsoft is likely to come up with an improved offer. |
| "This is so important from Microsoft's perspective there's a very good chance there will be more money on the table," said Ian Maude, from Enders Analysis. | "This is so important from Microsoft's perspective there's a very good chance there will be more money on the table," said Ian Maude, from Enders Analysis. |
| "The strategic logic is in the online ads market. It would make them a must stop destination for any company when considering its advertising plans." | "The strategic logic is in the online ads market. It would make them a must stop destination for any company when considering its advertising plans." |
| Although Yahoo's shares have fallen sharply in past months, its websites remain among the world's most popular. | Although Yahoo's shares have fallen sharply in past months, its websites remain among the world's most popular. |
| Microsoft's original offer was worth as much as $44.6bn, but since the deal was announced Microsoft shares have fallen. | Microsoft's original offer was worth as much as $44.6bn, but since the deal was announced Microsoft shares have fallen. |
| As half of Microsoft's offer is in cash and half in stock, that has reduced the value of the bid to about $41.8b. | As half of Microsoft's offer is in cash and half in stock, that has reduced the value of the bid to about $41.8b. |