Here why I think MSFT will walk away and smart investers should read between the lines.
MS gave Yahoo till 26th April to respond and if it does not response then MS will: 1- Walk away 2- Proxy war. and MS was clear that i will not raise the offer. so raising offer is not an option. Be specific and do not assume. People Assume and they lose, and this the game...
---Yahoo did not respond, then:
-----Only choice is proxy war, but I think MS might not go into proxy war since, because, it might take time and waste alot of money and SteveB was really keen about the deadline and time...
Then the logical step is Walk away, giving that MS just aquired FAST Search..---- I think this is a sign of walking away sliently----- and leaving shorts in vacuum.
Yahoo was up today and should not it unless there is a decision of MS that it will aquire Yahoo. but I see Yahoo stock getting up as a sign of falling next. News agencies are really smart how they put things together and usually you should be almost a lawyer to get what they want to say...
I personally sold all my Yahoo shares end of today... Maybe I am wrong and I did lost some money but did not want to lose more.
I might be wrong? any thoughts? Please add yours..
Again, why not offer say $25 a share now? It will piss Yhoo investors off----cause some chaos---and put Yhoo's ceo in the hot seat with their BOD and other investors. He'll really want that original offer back badly. In the mean time, MSFT higher can take advantage and buy up shares on the open market.
who else really wants Yahooo and can afford to buy them?
MSFT employees have voiced so that they don't want yahoo. They provide NOTHING....nothing to the bottomline and if Ballmer is doing it for the "eyes" and talent I'd sell all my shares. It would be wiser to just use that BILLIONS on buying back shares and providing investors with more upside than what yahoo could bring. I could understand if yahoo was going in the right direction but it's not and would make ZERO sense to bump up the offer against our own offer. At least BEAS had a excellent product and customers that Ellison paid up for. Yang is DREAMING that yahoo is worth more. A simple WALK AWAY will prove that point and quickly too. Why not buy Take-Two! and have talent for games for a business that IS GROWING. Yahoo Japan is in the toilet as well as the growth of their international operations....which are PATHETIC. Talk about burning cash or throwing it out the window. Yang has screwed with Ballmer for too long and if HE isn't pissed enough, I'd throw it right back in Yang's face. The potential backlash will be HUGE! Never mind that the proxy battle will go on for several more months at least because they haven't announced the meeting. This will drag out and in the meantime MSFT could be on the warpath by buying and growing exsisting divisions. I'd buy TAKE-TWO in a heartbeat, then buy Ebay, the latter will have MSFT a little more diversified. Secure PayPal and have Skype as well. That's THREE businesses to add revenue to the bottomline given that Ebay has already written down the Skype investment.