SKHIRAT, Morocco (Reuters) - Microsoft Corp (MSFT.O: Quote, Profile, Research) will hold firm on its $43.2 billion offer for Yahoo Inc (YHOO.O: Quote, Profile, Research),
regardless of whether Yahoo's quarterly results impress or disappoint
investors, Chief Executive Steve Ballmer said on Tuesday.
"We think we can accelerate our strategy by buying Yahoo and will
pay what makes sense for our shareholders," Ballmer said. "I wish Yahoo
all the success with its results but it doesn't affect the value of
Yahoo to Microsoft."
Ballmer, speaking at the launch of Microsoft's Web portal for North
Africa, MSN Maghreb, has set a Saturday deadline for Yahoo's board to
accept a deal with Microsoft or face a lower bid that it takes directly
to Yahoo's shareholders.
In its first-quarter results, due later on Tuesday, Yahoo is
expected to show progress in stabilizing its Web media and advertising
business after two years of decline. In Yahoo's favor are low
expectations from investors accustomed to seeing the company fall short
in recent quarters.
Yahoo officials are expected to use the results to argue why
Microsoft's $31 a share cash-and-stock offer undervalues its growth
potential and give the company ammunition in arguing for a higher price.
Microsoft has said its offer is "full and fair," refusing to sweeten
its bid since it has yet to see Yahoo raise a credible alternative.
On January 29 -- the day before Microsoft presented Yahoo's board
with an unsolicited takeover bid -- Yahoo warned it had a tough year
ahead as it cut jobs and spent more to shore up its advertising
business.
Projections for Yahoo profits range from between 6 cents to 13 cents
per share. On average, Wall Street expects 9 cents, down from 10 cents
a year earlier, according to Reuters Estimates.
(Reporting by Tom Pfeiffer; Editing by Derek Caney)
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