New in Microsoft Land

Yahoo! put an end to all the speculations around Microsoft’s unsolicited bid on Monday. The answer was a big no, thank you, and the motivation was that the Sunnyvale-based company’s board considered that the offer greatly undervalued Yahoo! The proposal of $44.6 billion, or $31 per share, was forwarded to the Internet giant on the first of February.

The rejection couldn’t go unanswered, so Steve Ballmer, Microsoft’s CEO issued a statement saying, among others, that “A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.”