Earnings Could Sweeten Microsoft Bid For Yahoo
April 22, 2008 8:26 a.m. EST
Jupiter Kalambakal - AHN News Writer
Sunnyvale, CA (AHN) - Financial results of Yahoo! Inc. to be disclosed Tuesday could sweeten Microsoft's bid for the Internet company, analysts said.
In February, Yahoo rejected Microsoft's $44.6 billion bid, saying the $31 a share offer undervalued the second most-widely used search engine.
A favorable first-quarter report would give Yahoo leverage in its discussions with Microsoft , the Los Angeles Times said. A deadline for accepting Microsoft's bid expires Saturday.
Analysts estimate that Yahoo sales, excluding revenue passed on to partner sites, may reach $1.32 billion, up 12 percent, according to Bloomberg. If Yahoo declines, it may face a hostile takeover fight and risk a lower bid.

