MSFT Leans Toward Hostile YHOO Bid, WSJ Says
Microsoft (MSFT) is leaning towards making a hostile bid for Yahoo (YHOO), the Wall Street Journal reports. The WSJ says an announcement from Microsoft could come sometime today. A hostile approach could potentially include several elements: a proxy contest for control of Yahoo’s board, as well as a tender offer for Yahoo’s shares. Whether MSFT would stick with its current $31-a-share cash-and-stock offer is unclear; there have been reports this week that MSFT CEO Steve Ballmer would be willing to bid $32-$33 a share.
In early trading, MSFT is up 14 cents at $29.54, while YHOO is up 66 cents, or 2.5%, to $27.47.
Hopefully YHOO wins the proxy fight and Ballmer gets fired. Buying YHOO is a terrible mistake at that price. Ballmer should stop listening to the investment bankers and just walk away from the deal.
Steve,
Execution risks and over-paying will trap Microsoft in the quick-sand while Google absorbs innovation via small/medium sizes acquisitions - like Cisco did in the 90’s.
IS IT POSIBLE that Msft walks away but not permanently? Mr. Ballmer knows already the price he’s willing to pay and it just might be in the $33-37 range. Msft walks to build -up its share price and come back later with the tender offer.
msft should pay more than $20/share for yhoo any thing more is criminal and should be treated as such
correction
msft should NOT——
msft should NOT pay more than $20/share for yhoo any thing more is criminal and should be treated as such
Balmer has to settle it now. The risk that Yahoo “prints money” with Google is too big. That could be Yahoo’s savior and $2-$3 difference is not worth losing the whole deal over. Yahoo is reinventing itself and only needs a little time to do it. Ballmer needs to act now and cut the runway that Yahoo may need to convince shareholders that this stock could go to $40.
Yahoo needs to get on board, they have had 2 yrs of lack luster preformance, no dividend, where MSFT has grown and paid dividend. My money has lost value. I would have been better to sell and buy BSC. Jerry needs to be canned and put on a shelf. Moday, I sell Yahoo and find a stock that will give me a return.
why is yahoo trading under $35.00?????????????????????????????????????????????????????????????????????????????????????????????????//
Just drop the offer and watch Yahoo die………….Google’s master plan - Jerry’s a fool he shold have taken the offer
yhoo has about $11.5 worth of cash & equivalent (alibaba + yhoo japan + cash) all and all pretty good deal for msft considering the 500 millions who go to yhoo’s portal every day. Try to remember how much phone or cable Co. were paying per customer… in the thousands $$$.
Walk away Ballmer. There are very few successful big merger specially a hostile one LISTEN LISTEN….BALLMER walk away.
>$35, even $37 being rumored, comes out to $47B. MSFT will eliminare divident in pursuit of their search advertising/query dreams ~
Good luck, don’t believe ANYONE will ever catch Google and Eric Schmidt, Larry Page, and Sergey Brin…
fenner
Microsoft said that they already offered the maximum and they’ll not increase the price..
sure ?
who offer already the maximum ?
i think they’ll increase
I think that MSFT should focus on Facebook, Myspace and the other social networking powerhouses like Bebo, etc. YHOO holds two things…their Finance site and their email addresses. In fact, email addresses are probably worth more than any social network if studied and used properly. Search is leaving the crowded web and heading to another beautiful sky.
Stevie Ballmer does it again,
he will be the winner in the end. Goodbye Yahoo
Welcome MicroHoo
Microsoft will not pay more than they originally planned to. Google will have to think now how to compete with MicroHoo. Buying ValueClick is an option for Google.
AOL will get an separate listing on the Nasdaq in time.
How will AOL survive this GAME??

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.