Monday, May 05, 2008

Yahoo Blows it and Rejects the MSFTs Sweetened Offer

It seems that Yahoo is too rich for MSFTs blood and the Redmond seems to have walked away from the deal.

"We were negotiating a way to find common ground and then on Saturday they chose to walk away," said the 39-year-old co-founder of the pioneering Internet company. "They started it and they walked away."

The reason why they walked away Mr. Yang is that you valued the company at $37 a share while MSFT was willing to pay $33 and that was only after you yanked them around. The company hasn't been worth $37 a share since January of 2006 when the company was still growing at 34% year to year.

The company is barely growing its EPS from one quarter to the next and is locked in 2nd place behind a giant rival. If the two companies joined up they may have been able to challenge Google. I think MSFT might scoop up Yahoo for a song a few years down the line if Yahoo doesn't do something drastic. It sure would suck if MSFT comes up with a $15 a share bid or something when the stock is in the high teens. Good thing I opted out of this entire mess.

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