To me it's free money long, assuming no SIF debacle over the w/e. But if you are hedged with MSFT short in the right ratio, then that should be ok too. Playing only the YHOO side is bad trading imo. nitro
Talks of a buyout by Mr. Softy have already been dismissed in the NY Times today - a much more thorough discussion than the New York Post article. They have said a 'strategic alliance' may be possible - but who knows if even that is manageable given Yahoo's cultural differences. Microsoft is not known for making massive purchases, and they have already spent their time under DOJ scrutiny for spreading themselves far and wide. By next week, all the enthusiasm will wick away.
And here we go! Should've bought more Yahoo puts. http://www.bloomberg.com/apps/news?pid=20601087&sid=alb1C7g8_Ndk&refer=home
Me too. I have been thinking that ever since Goog came on the scene that the only solution for msft and yhoo were a merger. John
If it's a partnership rather than a merger, then there is no Risk Arb involveld. That may have been why YHOO sold off. nitro