Joe Duck

Have Blog. Will Travel.

Ballmer has left the Building

Talks between Microsoft and Yahoo have stalled and may be over.   33 vs 37 per share.    I still think Microsoft is just calling what better be a bluff by Yahoo, because if they don’t take this MS offer the stock is going back to the sub 20’s and Yahoo is looking at a huge number of shareholder lawsuits asking why they sabotaged the offer of $33 when they are only worth $19 without Microsoft.

Here is my view at Webguild with the letter to Yang from Ballmer

May 3, 2008 - Posted by JoeDuck | microsoft, stocks, yahoo | , , , , | 5 Comments

5 Comments »

  1. Insiders, who hold a large number of shares, might have interests that are adverse to the great bulk of the shareholders. Emotional views of the buyout? Emotional views of what the shares “should” be worth if only the teeming millions valued them properly. Or it could simply be a negotiating ploy to get “more”.

    What is the cost of such stockholder lawsuits? Who would actually pay any judgment? Is this a battle over perceived value versus market value?

    Comment by FoolsGold | May 4, 2008 | Reply

  2. This is like watching three-legged elephants dance. The only thing worse would be a mashup for either one with AOL, which would add a pachyderm with one eye and a bad case of vertigo to the ballet.

    Comment by Dave Donelson | May 5, 2008 | Reply

  3. FoolsGold it will be interesting to watch all this play out. I think if insiders sold during the talks – especially before the breakdown when it was clear shares would go way down – they’d be subject to some serious SEC Ass Whooping but not sure on the law. Also not clear what is keeping Yahoo at 24 today but I assume it is the assumption that MS is still interested. Little has changed in terms of Yahoo prospects since MS’s offer.

    Comment by JoeDuck | May 5, 2008 | Reply

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  5. Yangoo probably errored. Then again, insiders might have anticipated Yang’s rejection of MS offer, and taken short-positions and made some shekels even as Yahoo stock went down. Best to go bearish before the Dems come in, 2009 or so, and nationalize Microsoft (Dept. of Windows!)–if not the search engine mafia—

    Comment by horatiox | May 6, 2008 | Reply


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