Microsoft said to be reevaluating Yahoo bid

Microsoft Corp. is reevaluating its bid for Yahoo Inc. because the Internet company might have lost value since it made its offer, a person familiar with the matter said Friday.

The news sent Yahoo shares down in extended trading.

A Yahoo spokeswoman declined to comment. Microsoft was not immediately available for comment.

Yahoo had rejected Redmond, Wash.-based Microsoft’s offer, made Jan. 31, saying it “substantially undervalues” the company.

The bid initially valued Sunnyvale, Calif.-based Yahoo at $44.6 billion, but is currently worth about $42 billion.

Microsoft repeatedly has tried to engage Yahoo’s board in discussions, the person said. But market conditions have deteriorated and changes in Yahoo’s business may have dragged down its value below what it was when Microsoft made its bid, the person said.

Shares of Yahoo fell to $26.81 in extended trading after rising 23 cents, or 0.8%, to $28.36 in the regular session. Microsoft shares gained 24 cents after closing up 16 cents, or 0.6%, to $29.16.