If I had a billion dollars, I’d be rich (with my apologies to Barenaked Ladies). If I were trying to buy Yahoo, I wouldn’t even be in the running.
Microsoft offered $44.6 billion, or $31 a share, a 62 percent premium on Yahoo’s share price at the time, for Yahoo. And what did the Yahoo board do? They sneered at it because the offer “substantially undervalues” the company.
Boy, I wish I could sneer at $44.6 billion. So, what would Yahoo consider a fair price? Maybe, some stock analysts have suggested to me, oh say, $60 billion. No offense to my day trading friends, but I think they’re getting a wee bit greedy with those estimates.
Indeed many people don’t care for the proposed Microhoo. Google, of course, doesn’t like it, but they’ve got their own priorities and messing with Microsoft’s proposed Yahoo deal is near the top of the list. The more the deal costs Microsoft the better, as far as Google is concerned.
Some people, however, really hate the idea. Henry Blodget, the well-known CEO and editor in chief of Silicon Alley Insider, a New York digital business community news site called the proposed acquisition a “disaster” in the making. Blodget went on to say that Microsoft CEO Steve Ballmer “is not used to losing. They’re doing something that’s conceptually smart, but that’s not going to work.”
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