Microsoft buys Yahoo! at a 30 percent premium and names Marissa Mayer as its new CEO.
This is a different world from 2008, when Microsoft made an unsolicited--and unsuccessful--bid for Yahoo! Microsoft stock has hit a 13-year high on hopes the company will appoint a "Wow!" candidate to replace Steve Ballmer. It's unlikely that it will be Alan Mulally. Other candidates that have been bandied about appear to be little-known insiders. That is unlikely to satisfy investors. The company needs someone who can change the Microsoft culture. It needs someone who is a tech leader that is focused on the consumer.
Bob is possible right on his prediction. If MSFT really said they will keep their search business, then it is only very logical to buy or merge YHOO with MSFT. An analyst mentioned that YHOO Asian assets is valued at $52 per YHOO share. YHOO has 1B outstanding shares with about $2B cash, so if MSFt offers to buy YHOO at $60 per share, then only $6B buyout price value for YHOO---cheap cheap cheap.
Sentiment: Strong Buy