The New York Times is reporting that Yahoo's board of directors plans on declining the 44.6 billion dollar offer from Microsoft. A Yahoo board meeting on Friday apparently covered possible responses to Microsoft's proposal and at the end of the day it was believed that the offer for Yahoo was below what the board believed the business is worth.
The board also spent time covering options for maintaining Yahoo is a viable entity, including how Yahoo might get Microsoft to increase their bid. Currently it is expected that Yahoo will post an official statement on Monday declining the offer.
The Wall Street Journal is reporting that Yahoo is actually seeking more money for the company and wants Microsoft to raise their offer from $31 a share to something above $40 a share. It also speculates that Microsoft is unwilling to attempt a hostile acquisition because it could potentially create regulatory implications as well as creating the possibility that it would require removing the entire existing board of directors.
A VC also has an interesting take on the situation. He is looking for Yahoo to come out of their board meeting with an action plan for restructuring the business not just a rejection of the Microsoft offer.
There is a lot of conversation going on with this potential landscape altering offering out on the table. It is also important to remember Microsoft recently offer agreed to acquire Fast Search and Transfer last month for 1.2 billion dollars.
I am sure there will be more coverage of this topic as it changes almost daily.
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