Yahoo! has flatly turned down Microsoft's multi-billion acquisition proposal, claiming the offer 'substantially undervalues' the company.
Microsoft originally made a $44bn offer to buy the struggling search engine company, to give it greater clout against rival Google.
In a statement on its website, Yahoo! said: "After careful evaluation, the Board believes that Microsoft's proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments."
However the firm hinted that it would not rule out further offers.
"The Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders."
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