Microsoft Buys Yahoo: Not
On Saturday Microsoft withdrew a forty six billion dollar offer to buy Yahoo. Microsoft changed its mind after having raised the bid to thirty three dollars a share, five billion dollars above what the current value is. This offer had a value of thirty one dollars a share in January and the stock for Yahoo closed Friday at $28.67 a share.
Microsoft carefully reviewed the counter offer, but thought that the economics demanded by Yahoo didn’t make sense. CEO Steve Ballmer stated that Yahoo asked for another four dollars a share, or five billion in value added. Making the offer thirty seven dollars a share.
Ballmer thought that bringing this offer to the shareholders wouldn’t be very sensible. Doing so would cause a probable protracted proxy contest and maybe lead to and exchanged offer. This lead Microsoft to conclude that Yahoo would be an undesirable acquisition. Ballmer stated that he had concerns that a continued collaboration between Google and Yahoo could make the deal undesirable for many reasons.