Microsoft Will Quietly Raise Offer (While Threatening To Walk)
Of course, no one believes that Ballmer is actually prepared to "go forward without a merger," particularly since he has repeatedly stated publicly that buying Yahoo! is the surest way to achieve Microsoft's goal of 30 percent market share in search advertising.
Sources said that Ballmer is more likely to reach out to Yahoo! through back channels with a slightly sweetened offer provided Yang and the board agree to begin formal deal discussions. Barring that, and absent a deal by Microsoft's self-imposed Saturday deadline to go hostile, Ballmer will likely move forward with his plan to unseat Yahoo!'s directors.
So there you have it. Microsoft is:
- Threatening to walk
- Preparing for a proxy fight
- Thinking of quietly raising its bid
Our money is still on the latter, at least as a first move. And if that one fails, we think the possibility that Microsoft may walk is higher than most people do.
See Also:
Microsoft Employees Want Microsoft to Walk
Ballmer Unveils Underwhelming Board Slate
But that's a dangerous alternative in my view because it opens up some escape routes for Yang. Yang knows now that his independent days are numbered, and if MSFT gives him an out somewhere else he might just take it.
No, I think MSFT has to press the case directly to the shareholders continuously until they've accomplished the merger. Yeah, tell Yang you'll negotiate for a higher bid. That CC was more impressive for Ballmer than I'd imagine he'd let be known. He wants Yahoo badly and it's worth far more than 31 to him.
We'll see, but Yang effectively gets his pink slip with a BOD slate filing, because MSFT will end up paying willing shareholders less than Yahoo wants, but he'll be gone nonetheless, unless he flushes out some other deal at the last minute, and D-Day is fast approaching.
Does he want to go out with some modicum of leadership intact, or just as an irrational and obstinate holdout?
Put the picture back up of the MILF Spitzer. Rack-a-licious!!!
Even though the original offer was huge premium, the deal was an excellent bargain to MSFT. I think raising the offer to 34 or 35 is still a descent deal and it will make it a lot easier to acquire Yahoo with out the proxy fight headache.
>Our money is still on the latter, at least as a >first move. And if that one fails, we think the >possibility that Microsoft may walk is higher than >most people do.
The market seems to be pricing this (walking) so lots of people probably see it that way.
1. tdoay, he should try to give out a great number. msft to 35+.
2. tell yang like to talk secretely from now.
3. Sunday, tell yang the price at 35,accept or off it secretely but tell yang he will let those big holders know in 2 hours and publish the price in 4 hours. and tell yang the price will go back to 32 if not accepted/formal negtioned and will reduce the price every each 1 week by 1 bucks since time is the money.
this way, give yang some face and pressure timely and make it friendly.
Microsoft needs Yahoo more then Yahoo needs MSFT. Why?how?Impossible you say? Well once earnings come out today and you see that MSFT OS is not selling as well as it should be due to lackluster improvements and performance lag you will understand the necessity that MSFT has to buy Yahoo.As i it has tried and unsuccessfully competed in the Search space and needs the tools Yahoo has to bridge the gap at least by half between what it has with Google. Thus it needs this merger to occur, it hurts the stock in the short run, but is critical in the long run with the way everyone is heading towards online apps with online sharing Office (excluding outlook) maybe having a shelf span of 5 years. Thus generating another stream of review is critical to MSFT more then Yahoo. As Yahoo could find growth with Google partnerships or a AOL merge and continue chugging along while MSFT fails in its bid to make a dent in Googles strangle hold. Thus this entire notion that MSFT will walk is bull crap they will raise the bid in the 11th hour and make sure when they buy the company they get the employees that believe they got fair value and do not leave ( as this is would defeat the purpose). Thus this will be done at 34 this weekend and Yahoo's independence will be over, sad fate for a great company that was mismanaged so poorly.
News Story
JAGfn Rumor by JAGfn.com
5:46 AM EDT April 24, 2008
(YHOO) (MSFT) Rumor that the bid for YAHOO INC COM (YHOO) will be increased to $36 by Microsoft (MSFT).
I'm betting MS will wait until after earnings today to begin the full-court press.
I think you need to hire me onto your staff