wonder if we are on the cusp of another announcement of significance. The april calls are on fire today, volume wise that is.
a citi analyst said he expects msft to raise the bid to 34. personally, i think mast needs to bid 35 plus to get the deal done. most acquistions are done at least at the 52 week high (34 for yhoo), so 35- 38 makes sense. outside of BSC, i can't remember a co. being bought for less then its 52 week high....a co. that is profitable and debt free like yhoo.
a citi analyst said he expects msft to raise the bid to 34. personally, i think msft needs to bid 35 plus to get the deal done. most acquistions are done at least at the 52 week high (34 for yhoo), so 35- 38 makes sense. outside of BSC, i can't remember a co. being bought for less then its 52 week high....a co. that is profitable and debt free like yhoo.
i think you guys are probably right. microsoft also has tons of cash so this is a pittance for them, and they dont need to back out like these PE funds who cant raise any capital. ton of risk here tho, so i wouldnt play it. in the small chance msft gets fed up w yahoo - where does the stock go? 11?
I think MSFT should follow Dimon's original model of bidding...hang the Yang! March the offer down $1/share for every two weeks that goes by without taking the deal. It's a bear market boys and MSFT should hang on to their cash.
if ballmer does that then he pisses off the key yhoo engineers that he wants with the deal. remember...yhoo has done what msft can't. wsft web division is the consistent money loser at msft, been that way for 10 years. whereas, yhoo is turns a profit every qtr. they dopn't grow as fasdt as goog, but they do a lot better then msft's web effort. ballmer may not raise it much, but he certainly won't lower it......yet. he may end up walking, but he won't lower the bid, too much at risk.