Microsoft may withdraw Yahoo offer

Business Materials 5 April 2008 04:46 (UTC +04:00)

Microsoft Corp is reevaluating its more than 40-billion-dollar bid for Yahoo due to the tough economic climate and the delaying efforts of the Yahoo board, US news wire Marketwatch reported late Friday. ( dpa )

Quoting a source "familiar with the situation," the report said that Microsoft is growing more frustrated with the Yahoo board's refusal to engage in formal negotiations even amid widespread perception that the Internet company's business has been deteriorating.

The report followed a Wall Street Journal article that stated that executives from the two companies met earlier this week but failed to resolve any of the outstanding issues that have kept the Yahoo board from authorizing the buyout.

The proposed deal was valued at a premium of more than 62 per cent above the company's stock price in the period before the deal was offered in early February.