Yahoo Concludes Discussions with Microsoft

Yahoo! Inc., (YHOO) which was founded in 1994 and it has since evolved into a major internet brand with search, content verticals, and other web services – today announced that discussions with Microsoft regarding a potential transaction – whether for an acquisition of all of Yahoo! or a partial acquisition – have concluded.

Yahoo!’s Board of Directors has determined, after careful evaluation, that an acquisition of Yahoo!’s search business alone would be a transaction not consistent with the company’s view of the converging search and display marketplaces.

This action would also leave the company without an independent search business that it views as critical to its strategic future and would not be in the best interests of Yahoo! stockholders.

The conclusion of discussions follows numerous meetings and conversations with Microsoft regarding a number of transaction alternatives, including a meeting between Yahoo! and Microsoft on June 8th in which Chairman Roy Bostock and other independent Board members from Yahoo! participated.

At that meeting, Microsoft representatives stated unequivocally that Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested.

Microsoft stock (MSFT) jumped to session highs of $28.55 – most likely a relief rally now that the distraction of the Yahoo deal seems gone.

Yahoo! in the other hand stated that the company remains focused on maximizing value for stockholders by continuing to execute on its strategy of being the “starting point” for the most consumers on the Internet and a “must buy” for advertisers.

Yahoo’s shares dropped $2.63, or 10.1 percent, to $23.52 in Thursday’s late trading.

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About Ron Haruni 1070 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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