Yahoo's board of directors have unanimouslyrejected Microsoft's proposalof a
buyout, saying that it is not in the best interests of the company
and its stockholders.
"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," the company
said in a statement.
The board of directors said it is continuing to review its
options and did not rule accepting another offer.
David Drummond, chief legal officer at rival search engine
Google, said in a
blog posting, "Could a combination of the two [Microsoft and
Yahoo] take advantage of a PC software monopoly to unfairly limit
the ability of consumers to freely access competitors' e-mail,
instant messaging, and web-based services? Policymakers around the
world need to ask these questions - and consumers deserve
satisfying answers."
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