Yahoo has not reached a
decision about Microsoft's
acquisition offer and is considering "a wide range of potential strategic
alternatives," Yahoo CEO Jerry Yang said in an e-mail to employees on Wednesday.
In the e-mail, which was addressed to "yahoos" and filed with the
U.S. Securities and Exchange Commission,
Yang said the Yahoo board is still reviewing the deal and will "take the
time it needs to do it right."
"Our board is thoughtfully evaluating a wide range of potential strategic
alternatives in what is a complex and evolving landscape," he wrote in
the e-mail, typed in all lowercase letters.
Microsoft announced its unsolicited bid for Yahoo last Friday, offering to
pay US$44.6 billion for the company, or 62 percent over Yahoo's closing share
price Thursday. The deal would greatly expand Microsoft's search and advertising
business and could help it to compete better with Google
online.
Yahoo is understood to be lukewarm on the offer. The company hopes a rival
suitor will emerge with a counteroffer, or that it can forge a deal with Google
that will allow it to remain independent, according to Wednesday's Wall
Street Journal newspaper, which cited unnamed sources.
However, analysts have said it is unlikely another company could match Microsoft's
sizeable offer, and a business deal between Yahoo and Google could raise antitrust
concerns because of Google's already dominant market position.
In the e-mail, Yang thanked the Yahoo staff for staying focused on their work
amid the turmoil. The company has hired "top advisors" to assist it
through the process and is focused on maximizing value for its shareholders,
he said.
