it's supply/demand. 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.
Maybe they did. Maybe other companies are in the process of acquiring businesses also. News is often late.
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