Does Yahoo!'s 'no' to Microsoft mean 'yes' to Google?

Following Microsoft’s unsolicited proposal, Yahoo! Inc today said its board of directors has reviewed the offer and unanimously concluded that it substantially undervalues Yahoo! including its global brand, worldwide audience, recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as its unconsolidated investments. Yahoo! also said its board is “continually evaluating all of its strategic options in the context of the rapidly evolving industry environment” and remains committed to pursuing initiatives that maximize value for stockholders.

Whether Yahoo! said ‘no, thanks’ to Microsoft because Google is said to be readying its own offer for the company, or even if a Google bid is part of the strategic options that Yahoo! said it is evaluating, is not known.

Industry watchers believe Yahoo! is waiting for a higher offer from the world’s largest software maker.

–Ann Steffora Mutschler, Senior Editor