Having evidently determined it has a better grip on Yahoo’s shareholders than Yahoo itself does, Microsoft has decided not to raise its bid for the Internet giant as it had been rumored to do, Wall Street Journal reported this morning. Declines in Microsoft’s market value since it made its $45 billion cash and stock offer two months ago have reduced the real value of the bid to around $42 billion. Many expected Microsoft would counter a little higher and seal the deal after Yahoo’s rejection of the offer on the grounds it undervalues the company.
Of course, we have to take the Journal’s sources on their word that this latest leak isn’t planted. “Such pronouncements are standard in deal negotiations but people close to Microsoft insist the stance isn’t posturing,” the story notes.