Spider's Latest

Microsoft will not raise Yahoo offer

Microsoft has no plans to raise its $44.6 billion bid for Yahoo, according to insiders.

An article in the Wall Street Journal reported that people close to the company say the stance "isn't posturing" and that the worsening economic situation now make the original bid look even more generous.

"There's no reason to bid against ourselves," the paper quotes an insider as saying.

Andy Beal, writing for Marketing Pilgrim, agrees that a higher offer would be illogical.

He writes: "Since its original bid, Yahoo's not found anyone to counter-offer and hasn't shown any signs that it's on the verge of a turnaround in fortunes.

"Microsoft's like a deadly spider that's caught an insect in its web. No need to be hasty, just let the insect tire itself out, then move in for the kill."

On February 10th, Yahoo formally rejected Microsoft's unsolicited offer on the grounds that the proposed amount "substantially undervalues" the internet company. ADNFCR-1536-ID-18533262-ADNFCR