WSJ Reports Yahoo to Reject Microsoft Bid

The Wall Street Journal has reported that Yahoo Inc. (Nasdaq: YHOO) will spurn the recent $44.6 billion offer made by software giant Microsoft Corp. (Nasdaq: MSFT) after determining the bid “massively undervalues” the company’s true worth.

Microsoft valued the Yahoo stock at $31 per share while the WSJ has indicated that anything under $40 per share would be ignored.

According to the WSJ fear is a major factor for Yahoo Inc. board members as it is believed any deal reached with Microsoft might come with problems in relation to regulators who could nix the agreement. If that were to happen Yahoo could suffer a major blow to its already fledgling stock price.

Source: Trans World News

Earlier we reported that Google was not very much happy about Microsoft's bid to acquire Yahoo! since it was presumed that the acquisition would create a more formidable competitor in Internet search and advertising -- and the war of words between the tech giants has intensified.

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