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Yahoo! (YHOO) Confirms Talks With Microsoft Are Over; Microsoft Not Interested in Pursuing an Acquisition

June 12, 2008 3:05 PM EDT
YHOO Hot Sheet
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Yahoo! Inc. (Nasdaq: YHOO) announced that discussions with Microsoft (Nasdaq: MSFT) regarding a potential transaction -- whether for an acquisition of all of Yahoo! or a partial acquisition -- have concluded.

The conclusion of discussions follows numerous meetings and conversations with Microsoft regarding a number of transaction alternatives, including a meeting between Yahoo! and Microsoft on June 8th in which Chairman Roy Bostock and other independent Board members from Yahoo! participated. At that meeting, Microsoft representatives stated unequivocally that Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested.

With respect to an acquisition of Yahoo!'s search business alone that Microsoft had proposed, Yahoo!'s Board of Directors has determined, after careful evaluation, that such a transaction would not be consistent with the company's view of the converging search and display marketplaces, would leave the company without an independent search business that it views as critical to its strategic future and would not be in the best interests of Yahoo! stockholders.

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