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    • On Yahoo/ Microsoft: Jerry Yang Should Be Fired [view article]
      Is it all possible that Balmer's "withdrawl" is designed to impact tomorrow's YHOO and MSFT stock prices to the benefit of MSFT?

      YHOO will likely trade between $22 and $25. MSFT can buy up to 5% on the open market tomorrow at levels $10 below the potential deal price saving MSFT $1B (1.4B/shares x 50% x $12 savings) or more. Additionally MSFT will also benefit tremendously from a rally in MSFT stock on news of the deal getting cancelled. If MSFT uses a 50/50 cash/stock ratio like they did in their original bid every $1.50 that MSFT rises above Friday's close saves them $1B. In the absence of any additional news I would expect about a $2 ralley in MSFT. So essentially MSFT's bid can increase by more than $2B or $1.50/share (from $33 to $34.50)without them even raising the bid. In fact, they could potentially make a $35 bid on Tuesday based upon Monday's MSFT closing price and actually be paying the equivalent of the $33 bid they wanted this weekend.

      Clearly Yang and YHOO's bankers are aware of this but it seems their backs are against the wall at this point. Just a theory.       May 04 02:58 PM
    • On Yahoo/ Microsoft: Jerry Yang Should Be Fired [view article]
      Jerry got overly greedy and Balmer called his bluff. In the end MSFT compromised by raising their bid from $29 to $33 despite tremendous MSFT shareholder pressure not over pay. In all likelyhood a deal could have been reached between $34 and $35.

      Unless Jerry can get MSFT back to the table he is going to be facing extreme pressure because this deal is the only way he is ever going to get anything close to this kind of value for his company. Yang needs to be reasonable and realistic.       May 04 09:04 AM
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