Yes, Yahoo did it again. Yahoo has rejected the second offer from Microsoft to buy it from $44.6 to $47.5 billions on Thursday. Microsoft initially increased its bid from $31 to $33 per share but Yahoo was firm for not less than $37 per share. So Microsoft had to go says Yahoo! “It is useless to negotiate with Microsoft” they added.
The denial has grown the rebellions from the shareholders. They are highly upset by the Yahoo’s way to negotiating with Microsoft. Moreover they, lead by Carl Icahn have vowed to bring down the present Yahoo’s board of directors and restart the negotiations from the August 1 annual meeting.
Then again Microsoft is indicating towards buying the Yahoo's Search Engine instead. But still Yahoo refuses saying their search engine is too important to sell.
Currently Google is at the highest rank at advertisement business with 75 percent of the US market and Yahoo at the distant 9% of the Market.
Meanwhile, Yahoo said it had agreed to let Google put search ads on its site in what it called an $800 million annual revenue opportunity that would boost cash flow by $250 million to $450 million in the first 12 months.
Now Yahoo has been struggling to convince their shareholders that it is rather more profitable with Google than Microsoft.
Yahoo shares sank as low as $22.50, 10% drop on news of the talks failing and expectations of the Google deal. It was their lowest level since January 31, the day before Microsoft announced its offer for the company.
Google shares finished up $7.75 at $552.95, and Microsoft closed up $1.12 at $28.24.