Ballmer Wisely Doesn't Overplay Microsoft's Hand 11 comments
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As expected and discussed recently, Microsoft (MSFT) did raise its offer for Yahoo! (YHOO) to $33 a share. Also as expected, Yahoo! wanted more. Certainly not expected, Microsoft said see you later before Yahoo! could say "Wait a minute, on the other hand...".
I imagine that right now many Microsoft shareholders and employees are cheering, while some Yahoo! shareholders are considering lawsuits. To not take a $33 a share price to the shareholders will certainly get the lawyers interested. In the end, Ballmer held to his reputation of not messing around, being upfront, and playing tough but fair. He did give a little, but in the end stayed true to his word.
A lot of people were talking about how Microsoft needed this deal, how Ballmer needed this deal, yet he was still not willing to overpay. Walking away may end up being the smartest thing he did. By also sweetening the deal by $5 billion, and deciding to not go hostile, Ballmer has also put Jerry Yang and the Yahoo! board on the defensive. Monday trading should be interesting. Expect Microsoft to make a play for AOL (TWX) or MySpace (NWS) in due time.
Disclosure: None
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This article has 11 comments:
Good for Ballmer!