Microsoft, Yahoo discuss merger: WSJ report

14 March 2008

Mumbai: Software giant Microsoft Corporation, which has offered to acquire internet and online advertisement major Yahoo Inc met on Monday to discuss the takeover offer, The Wall Street Journal reported today.

Microsoft Corporation, which made an unsolicited $42 billion offer for Yahoo on 31 January, is still considering a takeover of Yahoo, currently valued at about $40.9 billion.

The meeting, the first since Yahoo rejected the Microsoft offer, wasn't a negotiation as no bankers were present, the report said citing people familiar with the matter.

Yahoo executives mostly listened as Microsoft officials made a presentation of its vision of a combined company, WSJ quoted sources as saying.

Microsoft had offered to buy Yahoo for $31 a share in cash and stock, which Yahoo's board rejected, saying it undervalued the company. Microsoft still considers its $42 billion offer reasonable, considering the current market value of Yahoo Inc of about $40.9 billion.

The offer was originally worth $44.6 billion, before a slide in Microsoft's stock pushed the deal's value down.