Discussion in 'Stocks' started by quantumrock, Feb 1, 2008.
I don't get it. Why offer $31 when it's in the market at $19?? Buffett does that all the time.
buying all the shares from the open market may not be practical at all. Speculators may front-run and drive price to much higher levels than 31.
Gates should've asked his bestfriend Buffett to broker for him, lol
Maybe they did.
Maybe other companies are in the process of acquiring businesses also.
News is often late.
They can only get 5% of stock before they have to disclose anyway.
I sense Warren Buffet's influence on this deal. Microsoft management waited until general stock index values are low and the psychology is pessimistic, then they buy a business that represents value to themselves.
I remember reading that Warren Buffet avoids technology investments but Microsoft management is making this bid. Microsoft management has their own opinions.
I recall reading words attributed to J. Paul Getty, wonder if he actually said it: "The time to buy is when there is blood in the street." Well maybe people are scared enough now.
I am just speculating, but if MSFT is eying 100% of all YHOO stock then buying through the market (and reducing float) could end up being a lot more expensive than $31.
Buffet never (?) buys 100% of big public companies. He purchases 5, 6, 10% stakes through the market, over a period of weeks or months in order to limit his impact on price.
I agree; yhoo will never get over $31 on its own; no one has its right mind will purchase it over 31 now; MSFT can call off the deal if it can' t hold its ceiling price on yhoo. great bet to get yhoo; but running yhoo against google is a different story.
This sort of reminds me a HP buying compaq when Dell was king.
HP did come back after they canned Carly but the whole Compaq thing was a waste of money.
Ballmer = Fiorina?
It would have taken them years to buy up all the shares and takeover YHOO probably bring the stock price to ~40
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