Microsoft responded this afternoon to the Yahoo board's rejection of its acquisition offer, calling the decision "unfortunate" and reiterating that it "reserves the right to pursue all necessary steps" to ensure that Yahoo's shareholders can consider the proposal. The Redmond company's statement said Yahoo's response "does not change our belief in the strategic and financial merits of our proposal." Microsoft did not, however, say which of the available steps it plans to pursue.
Here's the full text:
It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties.
We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.
A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.
The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!'s shareholders are provided with the opportunity to realize the value inherent in our proposal.
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