Do the shares come from existing outstanding shares or new issue shares?
New shares, it would have to be dilution. They could not buy those shares on the market for that low of a price. This is attempted RAPE of YHOO shareholders.
I agree that it's rape but how and who can stop it? I was always afraid that MSFT would provide financial backing so that they can pick off the assets they want (on the cheap) and the PE firms sell off the rest of them at a handsome profit.