Yahoo seemingly made its position absolutely clear — it felt Microsoft’s offer of $31 a share, a 62 percent premium on current prices at the time of the offer, was unfair and undervalued the company.
In the end Microsoft dropped its offer, citing that Yahoo’s expectations were unrealistic, while Yahoo tried desperately to reassure employees and shareholders that it had a plan to weather the tough times ahead. However, it didn’t take long for Yahoo to apparently start hoping that Microsoft would consider pursuing it again. In a move like something out of a television drama, the company announced only 48 hours after Microsoft dropped its bid that it would be willing to negotiate for a sub $37 price and that it would be happy to reopen talks with Microsoft.
Chairman Roy Bostock indicated that Yahoo’s stubbornness on the $37 dollar price was basically an effort to get a bit more money out of Microsoft and it really didn’t hope to get that much. He told the Wall Street Journal, “Listening to shareholders is very important but you’ll get lots of points of view…we think a fair value for the company is $37. It was not a take-it-or-leave it statement.”
Source: DailyTech