Yahoo Inc.'s board formally rejected Microsoft's $44.6 billion takeover today, saying that it "substantially undervalues" the Web portal, but at the same time, left the door open for a counter offer.After evaluating the proposal, the board unanimously concluded that the proposal didn't adequately compensate shareholders for Yahoo's global brand, large audience and future growth prospects, according to a Yahoo statement.
The official notice followed leaks over the weekend that Yahoo had torpedoed the bid during a board meeting Friday. The board is evaluating other options.
Rather than closing the book on one of Silicon Valley's biggest takeover sagas, it merely added a new chapter. Microsoft's next move could determine just how long and bitter the battle will get.
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