Microsoft reacts to Yahoo snub

Yahoo’s rejection of Microsoft’s purchase offer is “unfortunate”, said Microsoft today in a report.

Yahoo turned down Microsoft’s offer of $44.6bn stating that the purchase would not be in its best interests. But sticking to its argument, the software giant maintains that Yahoo’s stakeholders would gain from such a deal.

“We are offering stakeholders superior value and the opportunity to participate in the upside of the combined company,” said Microsoft. “A Microsoft-Yahoo combination will create a more effective company that would provide greater value and service to our customers,” it added.

After a careful review process, the Yahoo Board of Directors said its brand, audience and growth potential would be stumped if the acquisition was to go ahead.
However in reply, Microsoft said the partnership would allow them to rival Google. “The combination will create a more competitive marketplace by establishing a compelling number two competitor for internet search and online advertising,” Microsoft said.

Microsoft added that the transaction would be in the interest of all parties concerned. “The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.”