Microsoft Says They'll Pay More for Yahoo

Microsoft is leaking that they are willing to increase their Yahoo bid to as much as $33 per share, up from the original $31/share offer. That original offer, which included payment in Microsoft stock, has fallen in value to just $29.12/share.

This is a surprise since Microsoft has previously stated they wouldn’t increase their bid. Analysts largely expected them to either walk from the deal or go hostile.

$33 may not be enough to get Yahoo to move the knife away from their nose, however. The WSJ says they want $35 - $37.

The people say that it’s unclear what final approach Microsoft will take, but that discussions between the two companies have been stymied by a stark divide on price. Microsoft has said privately in recent days that it’s willing to offer as much as $32 or $33 a share, well above the $29.12-a-share value of its original cash-and-stock offer as of Tuesday’s market close, these people say. But major Yahoo shareholders have signaled they want in the range of $35 to $37 a share, with Yahoo’s management and board similarly shooting for an offer in the upper $30s, they add.

Original post

Comments

[zimmyzee]

This is a done deal at $35.50. Just more blustering and posturing ahead of the inevitable.

[buyforeclosures]

get er done balmer-yang

[reader]

I have a lot of shares of MSFT that have done next to nothing the last few years. I really thought $31 (62% premium) on Yahoo was more than fair. I do not see any other bidders out there and yet everyone seems to feel that MSFT should raise their bid. Never and I mean never should you bid against yourself.

I am not a big fan of Balmer. I have not seen him be very inventive lately and I think I would be better served as a long time stockholder if MSFT said goodbye to this deal and looked for some smaller deals that allow them to move in the direction they need to move.

[reader 2]

Michael - What kind of lame blog entry is this? Jumping in front of the band doesn't make you drum major just like paraphrasing a few lines from a WSJ article, and not adding any new information or insight whatsoever, doesn't make you an author! Next time, save us all the trouble of reading your regurgitated material unless have something to add to the topic.

[MSFTDONTNEEDYAHOO]

[NotVerySmart]

You have to be kidding me. This is a setup before the walk. Each $1 adds over a billion dollars to the deal. This isn't a game, it's just silly. Yang shoud take the money and run. If he's too stupid to do so, then he deserves the $18 price Yahoo is worth. If Balmer goes up one more dollar MSFT will be punished for the bad deal. What's $33 dollars in stock worth when it tanks to $25? If Yahoo is a "done deal" at $35 then why is the stock still hanging under $30? This is an obvious play (leak) to get stockholders pissed at yang before MS pulls the plug and goes hostile. The greed Yahoo stockholders show on this site is just silly. Take you 50% profit and RUN. YHOO tanks next week hard. Believe me you'll beg MSFT to come back once the deal goes bust. I'm not long either one, so I can tell you I have no interest. But seriously folks, if I offered you $31 for your crappy $18 a sher yahoo holdings a few months ago, you wouldn't take it? Liar.

[MSFTDONTNEEDYAHOO]

i might call Balmer now and tell him to walk away and laugh at those greedy fat ass's face LOL... i wouldnt even offer $27 per share if i am Balmer.Yahoo knows that MicroSoft needs Yahoo more than the other way around in order to compete with GOOGLE.Therefore ,they assume Microsoft will give in sooner or later. I would not want to see a proxy war since it will be very expensive and time consuming. I would walk away and wait for them to come begging because the only reason YHOO's stock is holding up is because of MS's offer. I cant wait to see MS walks away from Yahoo!

[THofler]

MSFT should officially lower the bid by $1.

[babyfacemagee]

Just walk MS. Yahoo will come crying back begging for $25 in a few months. Give em a hand and they want the whole friggin arm. Yahoo=greedy/stupid

[jayme]

its more than obvious, and everyone in here, and other foruns state the obvious.

1- msft should have never started off with such a huge premium. this is a basic kids lesson at buying/selling anything. as buyer, start low, do not depreciate the sellers product, but dont worship it as well. they could have a done deal, at 31, by starting off at 25+

2- yhoo was trading at its up teens, when the insane 31 came, i thought, "yang is stupid if he doesnt take it" now i see beyond "ballmer is 10x times more stupid, for such higher bid, and keep on insisting"

3- thats what you get for naming you roommate college buddy to run your company, he will sink gates co.

4- who advises ballmer? shit, please, who came up with such a higher bid? i still dont get it.

5- lets put this way, yang asks for more, more and more, and stupid ballmer just give him everything he wants, they merge.. and... ?
it will be just the beginning of a huge mess

ego wars through engineers
interface/linking compatibilities
A DEBT MSFT WILL ACQUIRE, SINCE THEY DONT HAVE 50BILLION+ IN CASH TO PAY.

so, honestly
get this fucking 40 billion bucks, they have from profits from over the past years, and just invest 10% of it, into this "zuckerberg kids" out there, that, believe me, they will come out with much better and creative ideas, than mr. yang his useless portal.

i trully, believe that, there much more things to do with 40 billion dollars, the "zuckerberg kids" are just one of so many, that would be awesome, and consume wayyyyyyyyy less money, and would brig much more revenue at no cost, such as, ego wars, etc..

i think ballmer, has some fetish in acquiring yahoo, and will do everything just to fulfill his needs, like a spoiled kid, to have that desired toy, once he does that. he will play around with it a little, than gets annoyed and look for another one..

really, ballmer is stupid, his advisor's are equally or greater stupid, and will sink microsoft.

[orbrad]

Hands up Mr. Softy pay up or else!

[GKM]

SA Editors: Should there be DISCLOSURE here?