SUNNYVALE, Calif. -- The Yahoo! Board of Directors has reviewed Microsoft's unsolicited proposal and has unanimously concluded that the proposal is not in the best interests of Yahoo! and its stockholders, the company announced.

“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,” the statement reads. “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.”