April 5, 2008 at 18:11Microsoft may want to withdraw the offer to buy Yahoo!
Yesterday, April 4, Reuters reported that Microsoft is reviewing its offer to buy Yahoo! in light of the worsening market conditions. Citing "sources close to the center of events" Reuters reports:
The reasons for this “depreciation”, in our opinion, lie in the main losses of Yahoo! - general care of top managers. The last straw, apparently, was the departure of Ian Rogers, which we wrote about all the same . There I suggested that an unfriendly takeover is inevitable, which is why the "star" leaders of Yahoo! promptly left their posts. About Ian Rogers and his work at Yahoo! can be read in one of our past posts .
On the other hand, on March 25, Citigroup analyst Mark Mahaney said that Microsoft, in its opinion, could raise its offer by about 10%, to $ 34 per share against the original $ 31. The reason for this, said Mahaney, could be a surge in activity from Yahoo !: important and successful products likeBuzz and Alpha , FireEagle , MyBlogLog platforms are supplemented and expanded , Flickr and del.icio.us services are improved , etc.
Since the offer, shares of Google, Yahoo!’s most direct competitor, have fallen 16%, while shares of Yahoo! rose about one and a half times. Now, after the publication of Reuters, Microsoft shares rose less than 1%, and Yahoo! - fell by almost 5%, and many believe that this is not the limit and, most likely, the market value of Yahoo! drops even below the level of "to offer to buy."
Will the rumors about the recall of Microsoft offer to buy Yahoo! or not - time will tell. We hope that Yahoo! - Microsoft alone or as a subsidiary - will continue to delight us with innovative solutions - this has always been their strong point, especially recently.
- from here
Microsoft has repeatedly tried to engage the board of directors of Yahoo! in negotiations, but the market fell and changes at Yahoo! could reduce its value compared to the state as of December 31, when Microsoft put forward its offer of $ 44.6 billion.
The reasons for this “depreciation”, in our opinion, lie in the main losses of Yahoo! - general care of top managers. The last straw, apparently, was the departure of Ian Rogers, which we wrote about all the same . There I suggested that an unfriendly takeover is inevitable, which is why the "star" leaders of Yahoo! promptly left their posts. About Ian Rogers and his work at Yahoo! can be read in one of our past posts .
On the other hand, on March 25, Citigroup analyst Mark Mahaney said that Microsoft, in its opinion, could raise its offer by about 10%, to $ 34 per share against the original $ 31. The reason for this, said Mahaney, could be a surge in activity from Yahoo !: important and successful products likeBuzz and Alpha , FireEagle , MyBlogLog platforms are supplemented and expanded , Flickr and del.icio.us services are improved , etc.
Since the offer, shares of Google, Yahoo!’s most direct competitor, have fallen 16%, while shares of Yahoo! rose about one and a half times. Now, after the publication of Reuters, Microsoft shares rose less than 1%, and Yahoo! - fell by almost 5%, and many believe that this is not the limit and, most likely, the market value of Yahoo! drops even below the level of "to offer to buy."
Will the rumors about the recall of Microsoft offer to buy Yahoo! or not - time will tell. We hope that Yahoo! - Microsoft alone or as a subsidiary - will continue to delight us with innovative solutions - this has always been their strong point, especially recently.
- from here