The deal will go through at $35 cash!!!!!!!!! sooner or later, MICROSOFT needs YAHOO that simple.The problem with JERRY YANG is he dosen't want to sell at any price,if he would of come to the table with MICROSOFT when the deal was first announced this would of been settled three months ago!!!!!!! I own both companies shares and the deal makes alot of sence!!!
I believe $31 was an initial offer, not a take-it-or-leave-it bid. This fact is supported by MSFT's willingness to talk if YHOO comes back to the negotiations table... You don't come to that table unless you're willing to make some concessions. I think analysts actually got it right on this one...Y! was hoping for 35+, MSFT was looking for 35-...deal should be able to be made in 33-34 range. JMO.
Microsoft a computer and program builder is trying to buy a search engine. It's very clear why they want Yahoo. Not even Google can clam that. If Goog gets into manufacturing comps, Micros in deep, and with Apples growth you would think they are looking to make some moves themselves. Not saying they looking at Yahoo, but Micro is having some real competion concerns. If they can aquire Yahoo, intergrate it with Microsoft utility programs that can actually serve customer needs more productively also think, every Microsoft Comp sold, every Xbox, every online tech gadget they come out with will use their new Yahoo search.
I think this is their play, then comes the mobile sector as well as a grander videogame market. Also there is a hugh push for internet access for televisions and autos, IMO Microsoft is on the right track and can make good use of this deal, Yahoo knows it and is staling to see the want, bad move thou, Yahoo getting a deal for a go nowhere company, Micro is money, if they don't now or later, in the end they can always make there own while Yahoo falls apart, pull market shares in the end.
Just some speculations, but they gotta have a reason.
So is yahoo actually going come to the table or is msft going to have to blindly raise their offer to the $33-34 range maybe $35? And what happenes to Yahoo if MSFT retracts all offers? Hardline neg tactics on both sides but I feel like Yahoo is playing with fire.
Ballmer should make a public offer to pay ALL yahoo US employees 20%-50% more + stock options. Let them come over to Microsoft--- Yahoo plummets,
He buys it and and he already has his workforce.
Bloomberg TV just has a news item from American Technology Research. Their analysis offered three scenarios MSFT stock price going foward:
1) Microsoft walks away, MSFT goes to mid-$30's
2) Yahoo accepts current offer, MSFT goes to $44
3) Yahoo reject offer, proxy fights ensues, MSFT goes sideways.
I agree, MSFT WILL retest 52 week low soon, I do not think many people can stomach a loss of 20% near term with this Yahoo problem, it really is a no win situation with Yahoo not willing to join in. This will make for a very messy marriage already and this stock is priced way to high now with all of these problems in it.
MSFT to retest 52 week low and we have the worst 6 months for stocks coming up, May-Oct.
Unfortunately, that actually is the most likely scenario. However, I don't think they'll raise it much, perhaps just enough to bring it back to the original offer before today's MSFT stock value decline. If that happens you could expect the stock to fall to around $28 a share. I would prefer that Microsoft would walk away but Balmer is not returning my phone calls. :-)
Paying $40 Billion for 1.06 billion in profit is way too much, MSFT should walk away and build mobile computing search outfit with the money. In hostile environment people bail out and GOOG will be waiting to get YHOO best people.
Either way MSFT going to retest low of 26.80 with all of this uncertainty.
I hope MSFT tells Y! to "SUCK IT" and then watches them do exactly that as their stock falls to 10 and MSFT moves to 35 - 40.... then MSFT can go back to the Investors and counter with a lower take it or leave it offer.
run, don't walk. msft should explore mobile search. take some of that 40 billion and partner up with a wirless provider and do an end around goog. let yhoo drift down. make an offer when it's in the mid teens.
a proxy fight only pleases ballmer. by the way, where is gates in all of this? why no comments?
CNBC tried to spin yesterday that it would be goog for MSFT pps for them to raise their bid. Personally I feel the exact opposite. I believe MSFT shares will jump if they withdraw or YHOO continues to stonewall. Also feel YHOO dumps in this scenario
Why waste the money? If it falls through, you have a lot of shares of YHOO that are 25% lower in price than what you paid. Yahoo is not a dividend or value play. It is a has-been outfit that is seeing its best years through a rearview mirror. In a hostile takeover, the brains of the outfit would bail out to GOOG or another promising company. When the brains leave a company, it is as good as dead (at least in technology, where the assets are the people).