Microsoft and Yahoo: What’s It Going To Be, Stevie B.?
Nothing official to report yet on Microsoft’s (MSFT) internal debate over its next move in the company’s pending $31-a-share stock-and-cash offer for Yahoo (YHOO). But something has to happen soon…doesn’t it?
The WSJ and the New York Times both report that the board met yesterday to discuss its options, and didn’t reach a conclusion. The stories say that Microsoft is willing to boost its bid to as much as $33 a share, and that the company has been lobbying large investors in Yahoo to support the deal. The stories also say Yahoo holders have “signaled” that they want $35 to $37 a share.
The WSJ says that the Microsoft board gave CEO Steve Ballmer discretion to either go hostile or to abandon the deal altogether. All he has to do is decide, apparently.
The Journal also says Yahoo may still sign a deal on outsourcing advertising with Google (GOOG), and that the company also is still talking to Time Warner (TWX) about a potential merger with AOL in which Time Warner would get a 20% stake in the combined company.
And so we wait.
Yahoo today is up 26 cents, or 1%, to $27.67. MSFT is up 30 cents, or 1.1%, at $28.82.
given microsoft’s aggressiveness and huge ego in play, Ballmer is likely to let the deal pass. This could hurt Yhoo!’s stock price in the near term making it easier for MSFT to make a sweep on YHOO! at a later date! YHOO! will probably be better off forging a more elaborate deal with GOOG sooner than later
Looks like an (un)done deal…
Imagine this:
Google has 14 billion in cash. Valueclick buyout of 30$ a share will cost them 3 billion $. Nobody is looking at ValueClick this time.While the MicroHoo story continues, Google benefiting in search and buying Valueclick.
Eric Schmidt must have some fun here, while Steve B. still worrying to go hostile or changing his bid from cash and shares into 100% cash??
No doubt Microsoft NEEDS Yahoo it is their future new strategy! So abandon the deal no way, Change the deal not 50% share and 50% cash, change these percentages, more cash for example
It is quite simple, it is all up to Stevie B. we can speculate as much as we want.
I personally believe he will improve (35$)and change his offer (more cash instead of shares)
ballmer should walk away, and watch Yahoo stock drop like a rock, then make another offer when Yahoo’s stock is in the low teens. Maybe Mr. Yang will be more receptive to the deal then or maybe the shareholders will jump at the new offer. This MSFT/YHOO deal is getting to be old news, either way, do something!
That’s my guess…
Microsoft is just trying to has a lower price… anyway Steve don’t wait too much because u must pay more as u know and more u wait and more Google gain…
A few words to MSFT board and Ballmer:
1) Internet Ad market is innovating and evolving faster than you can get the Yahoo deal done - save the money and buy the start-up’s worldwide which have hungry and excellent engineers. You waste the money at Yahoo, people will take your money then walk out of the doors
2) The future is about the emerging markets - Alibaba does not want to be part of MSFT. Spend some of that $40+ billion to form a new VC fund in Asia and Easter Europe to develop an xbox based display ad (in-game) platform.
3) Over-paying (bidding against yourself) is silly in any business
4) Yahoo is about the past, spur innovation and entrepreneurship via incentives. The tech business is unique than other businesses - engineers love to work in a fun creative environment, not spending time to sort out org-charts or getting different systems to glue together, Time is of the essence in Internet business.
WALK AWAY!
Steve will walk. Yhoo stock holders will pay for thier insolence. Resistance is futile.
Ballmer should walk away from the $45 billion bid for Yahoo, let Yahoo crash down to $18, then wait for them to be desperate and re-approach them later with a lower bid. The business at Yahoo is declining not growing so MSFT would be wise to walk away before paying too much for a declining business model.
to Stewve Ballmer, Buy AOL, which will conserve cash like you always have done. Then buy market share with what’s left over because like it or not you are being distracted. Call me if you have questions because yoiu and those near to you are not seeing what is in the forest. Cash in hand is always KING… If you want my number please ask here……
Where would Yahoo be if
Stevie B. did not bid.
If it performed under the market then 27 wher its at now would be it.
The market was cold this winter and Stevie B. offered up some more ice.
Let the deal fail.
Yahoo will make it back to 40 on its own or with the help of Google and AOL. Google is running up because Stevie B. doesn’t know whether he’s coming or going and his stock is badly underperforming the market.
To prove a point if Stevie pays over 33.00 more cash and less stock you will see Google drop back to $500.00.
Yahoo will not fall if msft walks away, because now the investors know that msft is on the prowl, also the Google deal will destroy msft online business.
I think that Ballmer already has support from some major shareholders and the proxy battle will soon be over after it starts.
Why is every one assuming that the major share holders don’t know what they are doing.
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
