Simply put, Yahoo! feels that Microsoft undervalues the worth of Yahoo! “After careful evaluation, the Board believes that Microsoft’s proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments.”
On a global level, I completely agree with what Yahoo! has to say. According to Alexa.com, yahoo.com is the number one most trafficked website globally. Of course I don’t give complete credit to Alexa because it’s only a partial sample of the world’s Internet usage, but it’s one metric we can use. But, according to Netcraft.com, Google.com is the most trafficked, putting yahoo.com as number three, world-wide.
Basically Yahoo! is putting its foot down on a sub-par sale price of USD$44.6bn. Yahoo! feels it has a good future ahead of itself and they are not ready to sell out — at least yet.
Dating back exactly four years ago, News.com reports that Yahoo! officially dropped Google as the US default search provider for yahoo.com. “The change occurred at 9:30 p.m. PST Tuesday when Yahoo relaunched the search properties for its U.S.-based sites, including its Yahoo.com flagship home page.” So at one point, Yahoo! didn’t even care about search and was letting Google handle it entirely for the US division.
Yahoo! takes a different stance now, it certainly cares about search. Search is where the money is. Yahoo! wants to invest in technology, not employees.
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