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Yahoo Board To Reject Microsoft Offer

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Re: Yahoo Board To Reject Microsoft Offer

#8
"the $31 per share offer "massively undervalues" Yahoo,"

Now I'm no mathematician, but when microsoft made that offer, I believe their stock closed at 19.10, which I believe is significantly less than $31. The mere offer from microsoft caused their value to jump 50% in a day. Monday might be ugly for YHOO owners.

Re: Yahoo Board To Reject Microsoft Offer

#9
post #8

"the $31 per share offer "massively undervalues" Yahoo," Now I'm no mathematician, but when microsoft made that offer, I believe their stock closed at 19.10, which I believe is significantly less than $31. The mere offer from microsoft caused their value to jump 50% in a day. Monday might be ugly for YHOO owners.

This is normal in a a takeover situation.

The reason being that a company that you control is worth a lot more than a bunch of shares that pay you dividend, but offer you little or no control over the company.

The pundits know this and drive up the price, expecting to make a profit when Microsoft buys them out.

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