While the news of Yahoo!'s boldly rejecting Microsoft's bid was already out of the boardroom, Microsoft has now responded to Yahoo!'s official refusal to comply with the Redmond giant's wishes, and it appears that it won't take a 'no' for an answer.
Yahoo! expressed that the Board of Directors' decision was a unanimous conclusion that the proposal is not in the best interests of Yahoo! and its stockholders. Moreover, the proposal had received a comprehensive review from Yahoo!'s management team and financial and legal advisors and only then a decision was reached.
Yahoo!'s evaluation finds that Microsoft's proposal substantially undervalues Yahoo! including their global brand, worldwide audience, recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, and their large unconsolidated investments. Moreover, Yahoo! is weighing its strategic options in to pursue initiatives which would Ă˘â‚¬Ĺ“maximize value for all stockholders.Ă˘â‚¬Âť
Microsoft on the other hand is naturally nonplussed by Yahoo!'s gesture and has termed the decision as Ă˘â‚¬Ĺ“unfortunate.Ă˘â‚¬Âť Nevertheless, the Redmond giant is overly hopeful and wants to pursue in the direction aggresively. Ă˘â‚¬Ĺ“Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties,Ă˘â‚¬Âť stated the official statement from Microsoft.
Defending their proposal as Ă˘â‚¬Ĺ“full and fair,Ă˘â‚¬Âť Microsoft has emphasized the Ă˘â‚¬Ĺ“fullnessĂ˘â‚¬Âť of the proposal and that it offers shareholders superior value and the opportunity to participate in the upside of the combined company. Moreover, it believes that the combination would bring in a whole set of solutions for consumers, publishers and advertisers. And not to mention that the merger would Ă˘â‚¬Ĺ“create a more competitive marketplace by establishing a compelling number two competitor.Ă˘â‚¬Âť
Microsoft has also made known, albeit in what is being considered as a Ă˘â‚¬Ĺ“hostileĂ˘â‚¬Âť stance, that it would go to any length to pursue its dreams, Ă˘â‚¬Ĺ“Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!Ă˘â‚¬â„˘s shareholders are provided with the opportunity to realize the value inherent in our proposal.Ă˘â‚¬Âť