The whispering campaign has begun, with hints of Microsoft reevaluating its original bid for Yahoo. Is it a bluff, or a true change in interest?
After basically just hanging out and waiting for Yahoo to talk with them about the takeover bid for the past two months, pressure is being put on Jerry Yang and the management group to do something. The latest episode of the dealings between Microsoft and Yahoo over an unsolicited $44.6 billion offer for the Internet portal and its services concerns meetings between higher-ups, with the Reuters cited a source familiar with the discussions in saying Microsoft is reconsidering its offer. "Worsening market conditions" may be giving Steve Ballmer pause. Yahoo already has a handful of little lawsuits against it for rejecting Microsoft's offer outright. There is no question Yahoo has been in discussion with its banking advisors and the big institutional investors who control a lot of shares of Yahoo, and of Microsoft. One can imagine none of those parties wants to wait two more years for Yahoo to possibly meet the lofty figures they provided in a series of briefings. They certainly don't want to see Yahoo's stock fall if Microsoft walks away from the table, a scenario that could drop the share price below its January 30th low of $18.58.Suggest a Correction
Found an error or have a suggestion? Let us know and we'll review it.
No comments yet. Be the first to comment!