Henry Blodget is whining that the Yahoo Microsoft deal is back to where it started, but I think Henry’s wrong … again!
I’m glad Henry was wrong about the rumor that Yahoo’s Q4 would beat expectations because it was part of the reason I bought YHOO then, and even though the stock dipped due to a bad Q4, it surged on Microsoft’s offer of $31 per share so I’m well in the black. But now he’s wrong to say the deal is not almost done. I think this Yahoo Microsoft merger is coming very soon to an internet near you.
Citibank Analyst Maheney upgraded Yahoo this morning, anticipating a boost in the MS bid to $34. Hey, maybe he read my blog post of about 6 weeks ago where I suggested Microsoft raise their bid to $34?
Unlike Henry, I think this is not back to where it all started at all!
Yang didn’t want to merge, now he sees it as almost inevitable. Yahoo board wanted more, now they know anything past initial offer is gravy. Part of the show was probably the board protecting itself against lawsuits from the unlucky minions who bought their Yahoo at $35+, some at over $100.
Barring a Q1 miracle that would recalibrate Yahoo prices without help of MS bids, I think the fat lady is now almost done singing on this deal.
Disclosure: long on YHOO