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Yahoo Board To Reject Microsoft Offer

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Re: Yahoo Board To Reject Microsoft Offer

#41

Post by mattmaroon »

iamelgringo wrote: post #38
Xichekolas wrote: post #14

From the reason they quoted ("the $31 per share offer massively undervalues Yahoo!"), my guess is that this 'rejection' is just the first play in a dance over the price, which I'm sure Microsoft was prepared for, even if it bid high initially in an attempt to appear the White Knight. If Yahoo!'s board really did not want to sell, it would have cited lack of benefits to the merger, culture differences, or technology p…

Husband of a friend works in management over at Yahoo. She says the word is around the water cooler, that Yahoo's looking for around $36 a share, and then will sell. Sounds like morale is pretty low, and sound like there's going to be a lot of engineers looking for new jobs soon. Or, a lot more startups rising for Yahoo's ashes.

If I were him, I would have been hoping they'd accept the first offer. There's a pretty good chance now that MS isn't going to go any higher (especially given what's happened to their stock since the bid became public news) and his shares are going to spiral into the abyss.

Re: Yahoo Board To Reject Microsoft Offer

#42

Post by Tichy »

rms wrote: post #36
davidw wrote: post #35

Earlier quoted context omitted.

I wouldn't count on it. Look how many of 1908's giants are still big today. A few, but most are dead and gone. This book talks about some of the reasons why: http://www.squeezedbooks.com/book/show/2/why-most-things-fai...

OK. I doubt that Microsoft and Yahoo will be around in 2108. It seems inconceivable that Google could fall though, especially if Google.org's energy research pays off.

Why, by 2108 there will be superhuman machines and all... If Google is not the company who invents them, they will be toast.

Re: Yahoo Board To Reject Microsoft Offer

#43

Post by dkokelley »

bp001 wrote: post #39
dkokelley wrote: post #28

Earlier quoted context omitted.

"Massively undervalues" is a way of Yahoo saying "We think our share price should be higher than A: what it is, and B: what you're offering." Yahoo is undoubtedly going through a rough time in terms of their share price, but what's being forgotten is past performance. Since the beginning of 2007 Yahoo's share price has averaged around $25 or so, with a low of $22.73 and a high of $33.63. The pre-bid low this year was…

Average share price over the last year is meaningless. Yes, the economy in general was taking a beating, but Yahoo had also come out with disappointing earning and outlook. At any given time, the market does a pretty good job at pricing in all factors to a stock's price. If the economy as a whole is having problems and a company is at risk of lower earnings, the stock is clearly worth less. Over the longer term, if a…

It's just the business cycle. The economy at whole is having problems and the company is at risk of lower earnings, as you said. This is temporary. The economy will recover, and Yahoo is probably expecting their stock to rise again to closer to their average. Yahoo is probably telling Microsoft that the premium they are offering does not reflect their true value, but an artificially low value instead. Come back later when our stock rebounds with the rest of the economy.

I'm saying that Yahoo is currently down right now, and understandably so, but that it is set to rise with the rest of the economy and Yahoo wants Microsoft to reflect that in their offer.

I believe that there is validity in the claim "massively undervalued" though the term "massively" is subject to different interpretations.

Re: Yahoo Board To Reject Microsoft Offer

#44

Post by fortes »

amohr wrote: post #18

Visual proof that this would be a poor move for microsoft, at least according to investors. http://finance.google.com/finance?chdnp=1&chdd=1&chd...

MS stock took a hit because part of the deal involved a 7% dilution in MS shares. That type of hit was expected.

Re: Yahoo Board To Reject Microsoft Offer

#45

Post by nostrademons »

aston wrote: post #33
kajecounterhack wrote: post #21

Earlier quoted context omitted.

Is it possible though, that the stock prices went up as a sign of investor relief? I'm not sure all stockholders were too happy with the deal.

If Yahoo! does reject the offer, their stock price should, were the market completely rational, fall a lot. Back to what it was before Microsoft made the offer in the first place. Yahoo's the same company it was two weeks ago; the stock was just worth more since MS was offering a premium.

The other possibility is that investors are not completely rational.

Yahoo is the same company it was in November; the stock is just worth what it was then. It's the last 3 months that's been the aberration. ;-)

Re: Yahoo Board To Reject Microsoft Offer

#46

Post by pius »

iamelgringo wrote: post #38
Xichekolas wrote: post #14

From the reason they quoted ("the $31 per share offer massively undervalues Yahoo!"), my guess is that this 'rejection' is just the first play in a dance over the price, which I'm sure Microsoft was prepared for, even if it bid high initially in an attempt to appear the White Knight. If Yahoo!'s board really did not want to sell, it would have cited lack of benefits to the merger, culture differences, or technology p…

Husband of a friend works in management over at Yahoo. She says the word is around the water cooler, that Yahoo's looking for around $36 a share, and then will sell. Sounds like morale is pretty low, and sound like there's going to be a lot of engineers looking for new jobs soon. Or, a lot more startups rising for Yahoo's ashes.

You're famous: http://valleywag.com/355173/yahoo-to-sell-at-36
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