Microsoft: no improvement in offer for Yahoo
Shortly before its ultimatum in the poker game for the takeover of Yahoo expired, the software giant Microsoft again ruled out any improvement on its offer, already in the billions. Chris Liddell, Microsoft's Chief Financial Officer, reaffirmed that, should no agreement be reached with the Yahoo management by this weekend, Microsoft would either turn directly to the shareholders with a hostile takeover, or else withdraw its offer. He said Yahoo's demands for a higher offer were based on "unrealistic expectations", adding that Microsoft would be announcing its further intentions at the beginning of the coming week.
Immediately following a drop in its profits in the first quarter of this year, which was already expected due to problems with Vista and the fine imposed on Microsoft by the EU, the world's largest software group predicted a strong improvement in results of around 15 per cent in the new financial year, starting in July. In a telephone conference on Thursday evening, Liddell said the economic crisis in the USA had so far made no substantial impact on the company's business. The group makes around two-thirds of its sales outside the US.
Experts had feared a heavier fall in profits, but at the same time they were somewhat disappointed by the prospects for profit in the on-going quarter. The after-hours share price came under significant pressure, losing almost five per cent, dropping to around $30.30.