Microsoft abandons Yahoo bid higher bid is rebuffed Saturday May 3, 8:16 pm ET Microsoft abandons Yahoo bid after sides can't agree on acceptable sales price SEATTLE (AP) -- Microsoft says it's dropping its three-month-old bid to buy Yahoo because the two sides can't agree on an acceptable sale price. Microsoft Chief Executive Steve Ballmer says in a letter sent to Yahoo on Saturday that the software maker was willing to pay $47.5 billion for Yahoo. That's $33 per share. Ballmer says Yahoo insisted that Microsoft pay at least $53 billion. That's $37 per share. Microsoft's original offer was $44.6 billion, or $31 per share.
Ouch for the long. I better research equities that will be affected by this on Monday. I feel bad for the guys celebrating this weekend because of Friday's upswing.
god i really really really really really really suck on my trade execution lately http://www.elitetrader.com/vb/showthread.php?s=&threadid=125399&perpage=6&pagenumber=2 i didn't get in fail fail fail fail fail fail fail ARGHG!!!!!!!!!
You know, I shorted Jan 2009 30 puts on YHOO when it was at 19 (like 2 days before the deal was announced). I'm so glad I paid $4 to get out of that position a few days after the deal was announced. I did it because I was afraid Yang's hatred for MSFT would overcome his fiduciary duty to shareholders. Look where we are now, it's no surprise to me that the YHOO management completely fucked their shareholders. They all don't need money, and could care less; lawsuits? who cares, they have plenty of money to defend themselves.
that letter is awesome. let me summarize: you fucked up. i am sure now, as you read this, you realize how badly you fucked up. your poorly run, increasingly marginalized company will now see a share price in the teens come monday, and you will be eviscerated by everyone for calling when you're holding a high card of 5. we will sit back, watch you continue to steer the company into a death spiral and will pick up the remains somewhere down the line for a fraction of what we just offered. they actually manages to surpass the negotiating incompetence of the Minnesota Twins' disaster earlier this year that ended in them giving Johan Santana away for next to nothing. congrats Yang, you blew 'em away. btw- no position myself. considered a YHOO long @ 28.60 near the close but figured Yang could still fuck it up. with talk of a bid on the table in the $33 area late friday that seemed credible (and, as it turns out, it was), i bet a LOT of people took that bet (bait?) for an 'easy' 4+ points over the weekend. ouch...
If YHOO share price drops, what about MSFT? I don't see MSFT going up all that much in relation to the big drop in YHOO.
MSFT should be up pretty good on this. people were pretty apprehensive about them paying so much for YHOO. if they are up a couple bucks you got to think it would be a pretty good gap to sell.
I think the MSFT upside will be muted since MSFT may just go and buy YHOO on the open market or just go and look for some other search company to buy. MSFT has $44 billion it wants to spend. I don't think they are gonig to put the money back in their piggy bank.