Yahoo talks up prospects to head off Microsoft bid

The embattled internet company Yahoo has pledged to double its cash generation over the next three years if investors allow it to remain independent by rejecting Microsoft’s hostile takeover.A business plan published by the Silicon Valley web portal set out ambitious forecasts for growth in search revenue, video and display advertising.Yahoo believes its operating cash flow can increase from $1.9bn (£940m) to $3.7bn in three years. It expects revenue, excluding traffic acquisition costs, to jump from last year’s $5.1bn to $8.8bn in 2010. says revenue outlook justifies higher bid from Microsoft
Yahoo, owner of the most visited U.S. Web site, said Tuesday that it expected revenue to increase at least 19 percent in each of the next two years, justifying its refusal of a takeover offer from Microsoft, which now values the company at more than $41 billion. Shares of Yahoo had their biggest gain since Microsoft announced its $31-a-share bid last month.

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