Linked by Thom Holwerda on Sun 4th May 2008 07:19 UTC, submitted by sonic2000gr
Earlier this year, Microsoft offered to purchase search engine company Yahoo, however, the board of directors of Yahoo shot the offer down beause it 'massively' undervalued the company. This ignited an acquisition dance that took a few months, and rumours were abound as to what either of the two would do next.
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RE: CORRECTION - clue: It GOES UP on rumors of purchase
by Milo_Hoffman on Sun 4th May 2008 23:14
in reply to "CORRECTION"
Member since:2005-07-06
People keep saying this over and over in various forums.
But it shows they obviously have no clue how the market works.
Sure, yahoo's stock will go down next week.
But guess what, if word gets out that Microsoft is interested again, the stock price will go right back up like magic.
People who seem to think Microsoft can just wait and swoop in to get a bargin just don't understand the stock market at all.
Member since:2006-02-05
Honestly, their bid was WAY more then Yahoo is worth. The thing is that yahoo has a very distinct and unique corporate culture, which is probably why it was refused.
This is nothing but a negotiation tactic. Ballmer wants Yahoo (Lord knows why?) and like it or not, Ballmer's gonna get Yahoo.
He wants yahoo because yahoo owns almost as much of the web as google does (which, incidentaly is probably why google isn't trying to buy them. Last thing they want is monopoly status).
MS has had a puzzling internet strategy. They (correctly) identified the importance of web control before almost anyone else did, however they have not really been able to land a solid strategy for competition.
Member since:2005-07-24
They (correctly) identified the importance of web control before almost anyone else did, however they have not really been able to land a solid strategy for competition.
Despite the fact that they have always had so much control over the client platform. One would not have thought it possible for them to drop this ball.
Member since:
2005-07-06
This is far from the end of it. All we have here is that Microsoft is publicly withdrawing their bid while they wait for Yahoo's stock to crash and burn come Monday and let it plummet for several weeks. When the stock is at what they consider an acceptable price they'll go back to a now humbled Yahoo with a much worse offer than what they're getting now.
This is nothing but a negotiation tactic. Ballmer wants Yahoo (Lord knows why?) and like it or not, Ballmer's gonna get Yahoo.
Edited 2008-05-04 08:57 UTC