Microsoft bid to buy Yahoo seem to have come to an end,well at least after yesterday's event.If you have been following this news,you would know that Microsoft has recently try to bring in a better offer than the previous one to buy Yahoo but unfortunately,their new offer is still not good enough for Yahoo.
The new deal was reportedly worth to be about $46 billion.Microsoft was willing to pay $47.5 billion,or $33 per share,up from the bid's current value of $29.40 per share,according to a letter from Microsoft Chief Executive Steve Ballmer to Yahoo Chief Executive Jerry Yang.But Yahoo demanded at least $53 billion,or $37 per share,according to Ballmer.That would have been nearly double Yahoo's stock price of $19.18 at the time Microsoft first made its bid a little over three months ago.Ballmer also told Yang that taking the offer directly to shareholders would not be "sensible." Now there has also been some talk about a hostile takeover but Microsoft has said that they would not do that.Well it seems like all is over now between Microsoft and Yahoo but many analysts believe that Microsoft conceivably could renew its bid later this year if Yahoo can't bounce back from more than two years of financial lethargy.They think that the company's stock would sink into the mid-teens and open the door for another takeover offer that would be more difficult to rebuff.
When I heard that Microsoft is going to come up with a better offer,it came as nothing surprising.Hey its Microsoft we are talking about,probably the biggest software company in the world and when they want to get something,they will not give up easily.Yahoo on the other hand hasnt been doing too well financially,so you may say it was a good time to bid for it.I thought the new offer is not bad,which is up by $4 per share but Yahoo wants more.I dont think that they are desperate for the takeover to go through because they can still survive without it.The only possible reasons I can think why they are asking for more is because they want to get as much as they can if they were to sell even though they know they are not worth that much or they do not want the bid to go through.I doubt that this will be the end of the story.I am sure that we will hear about it again sometime in the near future.
Meanwhile if you wish to read Microsoft's full letter to Yahoo,you may click on this link http://money.cnn.com/2008/05/03/news/companies/msft.letter/index.htm?postversion=2008050320
*This report was taken from CNN and AFP.
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