Yahoo says Microsoft offer still 'undervalues' company

Updated from the top Monday 6:10 AM PDT by Dawn Kawamoto, who also added a short update note at the bottom at 2:30 PM PDT.

Yahoo on Monday responded to Microsoft's merger deadline, reiterating its rejection to the software giant's unsolicited buyout bid as "substantially" undervaluing the company.

"As a result of the decrease in your own stock price, the value of your proposal today is significantly lower than it was when you made your initial proposal," Yahoo CEO Jerry Yang and Chairman Roy Bostock wrote in a letter to Microsoft CEO … Read more

New Outlook add-on cuts through the inbox clutter

Keeping your e-mail organized isn't a full-time job; it just seems like it is.

I gave up trying to clear out my Outlook inbox years ago. I rely on the program's search features, which are improved in Outlook 2007, though finding specific messages is still a challenge. That's why I jumped at the chance to try out the beta version of Xobni (pronounced "ZOB-nee"), a new program that sifts your messages automatically and provides insight about your relationship to the sender. It's an invitation-only download for now, so you have to request that a … Read more

Report: Yahoo directors hash over Microsoft's merger deadline

Yahoo's board of directors on Sunday reportedly hashed over Microsoft's three-week deadline to close its mega-merger bid, according to a report in the Financial Times

The report did not note whether the directors would authorize the Internet pioneer to engage in formal negotiations with Microsoft. (On Sunday evening, The Wall Street Journal reported that Yahoo on Monday would issue a rebuttal to the new deadline.)

Microsoft launched an unsolicited bid for Yahoo on Feb. 1, in a deal initially valued at $31 a share. But Yahoo rejected the offer as undervaluing the company.

And while Yahoo's investors … Read more

Microsoft gives Yahoo three weeks to do a deal

Updated at 6 p.m. PDT with comments from an institutional investor.

Microsoft on Saturday issued an ultimatum to Yahoo, giving the Internet search pioneer three weeks to enter formal merger negotiations and conclude a deal.

The software giant threatened to launch a proxy fight to unseat Yahoo's board of directors, as well as take its case straight to Yahoo investors should no deal be reached in that period.

And as a further cattle prod in getting a deal consummated, Microsoft threatened to lower its existing bid, citing how Yahoo's value will be hurt if it needs to … Read more

Miami tries to bridge its digital divide

MIAMI--In the basement of a Catholic church, a woman loudly shouts the word "three," and a chorus of seniors repeats the word several times as part of their regular English lessons. A few yards a way, a small flea market features a display of clothes and other items. But next door to the flea market is the crown jewel of the Gesu Senior Center: its computer lab.

What began last year with only a couple computers in a corner, now consists of two enclosed rooms packed with PCs. This past Friday, about thirty Spanish-speaking seniors learned how to … Read more

Microsoft ends its siesta, plays hardball

BOGOTA, Colombia---In the time it took me to fly here from Miami, Microsoft's patience wore out.

As you may have read by now, the company went public Saturday with a letter to Yahoo's board imposing a three-week deadline. Come to the table and negotiate a deal or prepare for a proxy fight.

Of course, this letter didn't come out in the hour and a half I was sitting on the tarmac in Miami, but rather just after the plane took off for the three and a half hour flight. Luckily, my cell phone had Internet access from … Read more

Microhoo: Ballmer takes off his gloves

Microsoft CEO Steve Ballmer and his troop of strategists, lawyers, accountants, and bankers are done seeking a peaceful resolution with Yahoo's board of directors. It's been more than two months since Microsoft made what Ballmer calls a "generous" offer of $31 per share to acquire Yahoo. The more hostile phase of the negotiation is about to take place as evidenced in the letter sent by Ballmer to Yahoo CEO and co-founder Jerry Yang and its board of directors today.

Following is an interpretation in plain language (a sanitized version of what may have been said behind … Read more

Forget Yahoo, still remains the better fit for Microsoft

Give Steve Ballmer credit for trying to bail Jerry Yang out of an impossible position. But he'd do better teaming up with Marc Benioff and

If you're a Microsoft shareholder, the good news is that Saturday's love letter to Yahoo's board finally starts the clock ticking. Yahoo's got three weeks to come up with a final yes or no answer--and no, Microsoft says, this is its best and final offer. Hopefully, Yahoo's incredibly deluded board will continue to fancy its prospects and tell Microsoft's negotiators to take a hike. At that … Read more

Ballmer's letter to Yahoo board: 'Now is the time'

Editor's note: Here's the full, unedited text of a letter Microsoft CEO Steve Ballmer wrote Saturday to Yahoo's board of directors, giving it three weeks to make a decision about the software giant's $44.6 billion bid for the Net pioneer.

April 5, 2008 Board of Directors Yahoo! Inc. 701 First Avenue Sunnyvale, CA 94089

Dear Members of the Board:

It has now been more than two months since we made our proposal to acquire Yahoo! at a 62 percent premium to its closing price on January 31, 2008, the day prior to our announcement. Our … Read more

Microsoft sets a three-week ultimatum for a Yahoo decision

Following earlier news that Microsoft was recalculating its $44.6 billion bid for Yahoo, it has become clear what the company has decided to do. Microsoft has thrown down the gauntlet, as evidenced by a letter Saturday from CEO Steve Ballmer to Yahoo's board of directors. Here's the quote that sums up the entire letter:

"If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board.&… Read more