Do you think Yahoo is worth $31 a share?
That would be:
1.34 billion times 31 = forty-one billion five hundred forty million
That is 41,540,000,000 Dollars.
Would you pay $41 Billion dollars for Yahoo? That would most likely be quite a bargain. At least that is what Yahoo is saying, who is currently trading at $28, up from $19 on January 31st, 2008.
Microsoft offered Yahoo $31 a share for the company. A memo was issued to Yahoo employees that no decision had been made at this point.
It is completely likely that Yahoo doesn't care if they are bought out and they simply want to jack up the offer price by getting Google and Microsoft into a bidding war. It seems far more likely that a final price would be around $45 per share. If Google does get into bidding war expect a sharp increase in prices.
This is probably a great opportunity for a short term trade. Of course, with all short term trades, trade on your own wisdom, not on mine.
3 comments:
Very interesting. I seriously dont understand why MSN would think that buying out Yahoo will help them. Google is the only one coming up with anything original. You would think that Microsoft would be better off putting that 44 billion into some original ideas.
They try.
It is a lot easier for Microsoft to spend money on ideas that already exist than make their own. Plus, they have mountains of money to spend. It would actually be a huge blow to Google if this deal went through. Yahoo.com is the most visited website on the internet. It would be a huge step forward to Microsoft, and really makes sense as a business decision.
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