Comments on: Yahoo Rejects Microsoft’s Bid

By: Exotic Filipina

Exotic Filipina — Thu, 14 Feb 2008 06:41:08 +0000

It is better that Microsoft invests that much money in its software engineers and resources to compete with both Google and Yahoo.

By: Dublin

Dublin — Mon, 11 Feb 2008 10:47:57 +0000

Yahoo might try to get another 25% but they won’t get it. Why? Because the company is not worth 57 billion, even to Microsoft. The most they would pay is 50 billion tops.

By: Nick

Nick — Mon, 11 Feb 2008 08:03:58 +0000

Is Google the next?

By: SEO Web Design

SEO Web Design — Mon, 11 Feb 2008 05:59:15 +0000

Yahoo has already lost in this battle. Other than combining with Microsoft, i do not see any future of Yahoo in the internet market. Webmasters like us would definitely wish to see this major combination that will change the internet marketing world which definitely simmer Google’s arrogance.

By: John Hunter

John Hunter — Sun, 10 Feb 2008 23:56:13 +0000

I believe Yahoo is undervalued even at $31. Yahoo’s poor performance the last couple of years has lead to a substantial drop in the stock price. Microsoft has likely made a smart play in offering to buy the stock at what was a substantial premium (Microsoft would gladly have paid more 2 years ago).

Yahoo’s failures make it much more difficult to argue (to me anyway) that Microsoft will do worse than Yahoo has at achieving Yahoo’s potential.

By: Sean Maguire

Sean Maguire — Sun, 10 Feb 2008 16:09:02 +0000

@Hagrin – I never suggested Yahoo would get the additional 25% figure naturally in the short term, but I certainly feel they could get to the figure MSFT offered. They were there within the last year.

As for going higher, MSFT is hungry to get this deal done and when it comes to how something is priced, it’s all about how badly someone wants it.

It will be interesting to see how it plays out, but I think that it’s a relatively easy sell to the stockholders to “hold out”, now that the Yahoo stock price has already increased as a result of the offer.

By: Chris Blackwell

Chris Blackwell — Sun, 10 Feb 2008 08:03:09 +0000

@Sean & @ Hagrin – I agree with both of you. Sean you are right that Microsoft is acting on a 52 week high but Hargin you are also right that Yahoo has no future prospects of the stock going naturally higher.

I think Microsoft wants to do anything possible to buy Yahoo, but having to take on a lot of debt to do it is something that is very foreign to Microsoft and I don’t know if they will commit that high.

By: Hagrin

Hagrin — Sun, 10 Feb 2008 03:07:37 +0000

@ Sean – At another 25% you’re looking at another 10+ billion dollars for a property who had pitiful Q4 results. Not to mention, if we’re talking basic supply and demand, MSFT is the only one looking to buy YHOO so exactly what will drive the price upwards? It definitely won’t be the slowing US and global economies. YHOO’s PE is already in the 60′s meaning the stock is probably still overvalued.

Not saying it won’t happen, not saying they should accept, in fact I can’t wait till this story comes to something other than rumor and speculation. I just don’t see the financials pushing this price higher other than MSFT desperation.

By: Brian Yerkes

Brian Yerkes — Sun, 10 Feb 2008 02:59:56 +0000

Sean, I agree. I think Yahoo will get it if they are able to push it higher.

This entire deal just seems to have so many cons…from the side of a yahoo user. Currently, Yahoo offers many cool free tools like the Yahoo Developers section etc..and if you give money hungry Microsoft the control, I bet the “cool” and “free” stuff currently on yahoo becomes “expensive” and “subscription based.”. It will be an interesting week to see what develops.

By: Sean Maguire

Sean Maguire — Sun, 10 Feb 2008 02:28:14 +0000

@ Chris – For one thing, it’s lower than Yahoo’s 52 week high, so Microsoft is acting on a low point for Yahoo.

By holding out, I suspect Jerry Yang is looking to push the offer another 25% or so. I bet he gets it.