Rumors abound that Yahoo is rejecting Microsoft’s $44.6B bid this coming Monday. Insider info reveals the Yahoo’s board members think the $31/share offer is too low.
Others are saying Microsoft’s offer undervalues Yahoo stocks because it did not consider its stake at Yahoo! Japan and China’s Alibaba. The offer should have been in the vicinity of $40/share for it to be seriously considered by Yahoo.
Before the Microsoft offer, Yahoo stocks were dangling around $19/share. It climbed up to as high as $29.83 right after the announcement, a 55% jump.
My prediction come Monday (if the rumor is true and the announcement is made) — Yahoo! stocks will drop to a low of $18 by close of trading day.
We can then all sleep and not think about this MicroHoo! happening anytime soon. My gut tells me Steve Ballmer is very aggressive with this and Microsoft will up the offer to $40. Let’s see how this pans out next week.
Great post, thanks for the info