Yahoo! Rejected Microsoft's $44.6B Offer

Yahoo! Inc. confirmed to reject Microsoft Corp.'s $44.6 billion cash-and-stock offer, saying the unsolicited proposal substantially undervalues the company. Yahoo! said that its management team, along with financial and legal advisers, believe the offer doesn't reflect cash flow, earnings potential or recent investments in its advertising platform, in a statement. "We remain committed to pursuing initiatives that maximize value for all stockholders," the statement said. Yahoo said its board would continue to evaluate other "strategic options."

Microsoft offered $31 per share on Feb. 1, which was a 62% premium over Yahoo's closing price the day before. Microsoft said it believes the acquisition of Yahoo would give it the engineering talent and resources to compete better with Google Inc.