Sunday, May 4, 2008

Microsoft abandons bid for Yahoo

This is the second offer from Microsoft Yahoo turned down. The blockbuster deal would have helped both companies become a serious competitor of Google. Yahoo was hoping to get $37 a share from the deal, Microsoft only offered 33. What seems like a difference of 4 dollars is bigger than that, about 5 billion dollars bigger.
Yahoo shareholders are really mad at their board for not going forward with the deal, they think an offer like this is really rare, and of course they want to make a profit out of their investments.
I don't see Microsoft make another offer any time soon, both companies would just have to keep taking that second and third place behind Google. Now Microsoft is hoping to see Yahoo's stocks to fall (this Monday more than likely), executives will be under pressure to act upon it and reconsider the bid.

No comments: