$15.50 cash per share (same as before) plus .80 share of MSFT stock (up from .475).
MSFT could easily justify the increase in stock due to:
1. The fall in MSFT sock since the bid.
2. The Yahoo forward looking plan.
3. The first bid is not the last bid.
Yhaoo has disclosed about $1B in synergies with the merger. The extra stock may not cause any dilution to MSFT earnings.
This only increases MSFT outstanding stock by about 4%.
Total value of new bid $15.50 in cash plus (.80 X $28.50) $22.80 in stock: total $38.30.
I hope you are right, it's just that "Mr. Market" seems to strongly disagree.
Without the MSFT bid YHOO would still be a teenager.
I would be thrilled if the price moved up to $32 - $34, or I would take the $31 tomorrow and be done with it and look for opportunities elsewhere.
I have too much of my $$ tied up in this deal.
Make it $38 All Cash-deal. "DONE DEAL". Legg Mason, Capital Research and Barclays will be on board. I think Jerry (48M shares) and Filo (78M shares) will also be on board. There you go, let us forget poison pill for now!