The atmosphere is thick with anticipation of the upcoming talks between company giants Microsoft and Yahoo. Reportedly, if Yahoo does not start talks this weekend, Microsoft could launch a hostile bid.
Microsoft stated that they will not raise their bid of $31 a share. They don’t feel that right now, after preliminary tests, that Yahoo is worth more than $46 billion. Yahoo stated that the proposed bid underestimates the potential value of the company.
Microsoft also stated that if talks do not take place or if an agreement cannot be reached, Microsoft will start looking elsewhere for future endeavours. Microsoft is looking to vastly improve their position in the online advertising market, especially in the highly lucrative aspect of search advertising, which Google dominates.
