Yahoo! has sent a letter to shareholders telling them that its current management and strategy will create value in the face of Microsoft’s $45 billion takeover bid.
It is now believed that Microsoft is considering its options following Yahoo!’s rejection of its bid (see
Yahoo! Rejects Microsoft Takeover Bid), with Facebook mentioned as a possible acquisition.
In October, Microsoft bought a small stake in Facebook for £120 million, which valued the social networking website at $15 billion, far higher than previous bids from Yahoo! which valued it at $1 billion and $1.6 billion.
Jerry Yang, Yahoo! chief executive, said in the letter: “We are well on our way to transforming the experience of Yahoo’s users, advertisers, publishers and developers – an important shift that is at the heart of our plan to create stockholder value.”
Earlier in the week it was reported that News Corp had been in talks with private equity firms about making an investment with Yahoo! that would give it a shareholding of more than 20%, which would allow Yahoo! to remain independent.
It was reported that a deal could involve Rupert Murdoch’s company merging its social network MySpace and other websites with Yahoo !.
As well as a possible deal with News Corp, it has also been reported that Yahoo! has also been in discussions with Google and AOL about possible tie-ups in an effort to fend off Microsoft’s advances (see Yahoo! Could Restart Merger Talks With AOL).
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