Update: Reuters has reported that Microsoft is evaluating its bid and could walk away from the deal. Yahoo shares are down 5 percent in afterhours trading. Looks like things are about to get really interesting.
Maybe this is just saber rattling, but if you’re a Yahoo shareholder you have to be spooked. There will be a lot of updated posts on this one. Original post starts here:
Welcome to installment 4,500 of the Microsoft-Yahoo drama. Microsoft (NASDAQ:MSFT) and Yahoo (NASDAQ:YHOO) reportedly had informal talks this week, but got nowhere.
I hear there’s an important meeting at Yahoo coming up this Monday that will include top execs and division leaders. I’m hearing it’s an all-hands-at-the-executive-level type of thing. Is this the meeting that Microsoft has been waiting for? Is Yahoo ready to throw in the towel and it’s holding this meeting to notify managers that a deal is imminent?
Goldman argues that it's unlikely Microsoft will walk and I’m inclined to agree. In any case, the pressure will mount on Yahoo management.
What I really don’t get is why Microsoft doesn’t just start accumulating shares. There are no other bidders and Yahoo is well below Microsoft’s bid. Enough of this banter. Steve Ballmer needs to start buying some Yahoo shares.