Microsoft to Stay Firm in Original Yahoo Offer

According to published reports, Microsoft is unlikely to raise its bid for Yahoo. It seems that Microsoft doesn’t think Yahoo’s recent projected revenues provide any reason to raise purchase price from the original $31 per share offer. The bid included cash as well as stock and the original $44.6 billion buyout price is now valued around $42 billion.

In early March, reports surfaced that the two search players had met to discuss generalities of the proposed acquisition. So far, there has been no second date, and some moves by the two companies have shown potential incompatibilities for the pair. Yahoo joined Google’s OpenSocial initiative and Microsoft is engaged in a data portability partnership with 5 social networks.But Microsoft is showing a strong hand as a patient suitor.

Upcoming Q1 revenue reports could provide fodder for either side to defend its stance. But many analysts point to a forthcoming Yahoo shareholders meeting as a pressure point for Yahoo CEO Jerry Yang and the board of directors. The meeting must occur within 13 months of the last meeting, which was held June 12, 2007.

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