MSFT needs to drop the bid and in 6 months bid half
I don't argue the fact they should go after google but not by overpaying this much for yahoo. Yahoo is worth maybe 15/share and that is generous. April 15 the earnings will be very weak. If msft drops their bid now yahoo will crater under 19. If they time it a few days before April 15 earnings are announced (which will be weak) yahoo will head down under 15. At that point msft can come in and put a $23/share bid with a 5 day deadline to accept.
I would wait on the $23 offer though for a few weeks to let shareholders file suits and bake off yahoo management. THEN I would offer the generous (and still to rich) $23/share. I'd make it half stock and half cash too. Not worth it to take on any debt to pickup yahoo at this juncture.