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Monday, February 11, 2008

Microsoft Is Ready to Acquire Yahoo!

image Yahoo! Board of Directors feels that Microsoft's Proposal of $44.6 Billion substantially undervalues Yahoo!. They issued a press release of this today morning.

They said that "After careful evaluation, the Board believes that Microsoft's proposal substantially undervalues Yahoo! 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."

Yusuf Mehdi, Microsoft senior VP-strategic partnerships had a discussion with Advertising Age about this deal. Below is a conversation which indicates that Microsoft is already prepared to acquire Yahoo! at any cost.

Ad Age: If Yahoo comes back and says this isn't enough money, would you borrow money or partner to make it happen?

Mr. Mehdi: Without a question, we are very committed to this combination. ... We have a whole set of plans and preparations ready to go to make it work. And we'd like to do that in a cooperative way with Yahoo. No question -- our commitment is clear with this one.

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