At least for now as Yahoo officially rejected the Microsoft offer. It's getting more interesting now. Not sure what this rejection real means behind, whether they ask for more money (most likely as they claimed in the rejection letter that Microsoft's offer substantially undervalues them, or they just don't like Microsoft no matter how much MS offered. It's now Microsoft turn to whether they want to continue playing the game or dump the idea at the moment.
It's quite obvious why MS would like to make this move, but to a struggling company for years like Yahoo, what are the other options??? The rejection only looks good if Microsoft offers the second or third deal but would be stupid if they choose to wait for another year or just walk away.
The market seems to welcome Yahoo's move though as YHOO is up $0.40 and MSFT is down $0.60 at the moment when I posted.
<update date="Feb 11, 2008">
Microsoft respons to Yahoo's rejection that the offer is fair. I agree, because, how could an offer that raised Yahoo's stock by 60% be claimed as "undervalue"? Where does this $40 per share thoughts come from? Now Yahoo, as Microsoft has kicked ball again, what's your next move? I think I should take "bye-bye" off the title now, and put "hi" in it instead.
</update>