Yahoo asks Microsoft to improve takeover offer

08 April 2008

Mumbai: Internet search major Yahoo Inc has again rejected the $42 billion takeover offer by Microsoft Corporation, but said it was not against a takeover by the software major.

Responding to a three-week deadline by Microsoft Corp to accept its takeover bid, Yahoo boss Jerry Yang said ''the offer on the table is still too low.''

In an open letter to Microsoft chief executive Steve Ballmer, Yahoo said the software giant's threat of a proxy battle was counterproductive and Yahoo would only be open to a better deal.

Yahoo rejected the initial offer of $45 billion (EUR 29 million) two months ago because it substantially undervalued Yahoo. Microsoft share has since fallen, making the offer even less attractive.

Yahoo said a number of things have since happened to increase the value of its business: the presentation of a three-year financial and strategic plan, the disclosure of new offers, and the announcement of the first detailed plans on the AMP web platform.

AMP will be rolled out in late summer or autumn, making it easier for partners to more precisely target their advertising. This platform is expected to boost the lucrative online graphic advertising business in which Yahoo is market leader.