SAN FRANCISCO (AFP) - Yahoo's board of directors on Monday rejected Microsoft's buyout offer, saying the 44.6-billion-dollar bid is too low and not in the interest of shareholders of the veteran Internet company.

"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," Yahoo said in a statement.

As a result, the board "concluded that the proposal is not in the best interests of Yahoo and our stockholders."

Microsoft told AFP on Monday it "has no comment at this time."

Read more - Yahoo! News