Microsoft exit hits Yahoo shares(In pre-market US exchanges, Yahoo shares fell 22%)

[C.Ron7aldo]

Microsoft exit hits Yahoo shares
http://newsimg.bbc.co.uk/media/images/44626000/jpg/_44626996_yahoo_getty226b.jpg

Yahoo's US shares are expected to fall when Wall Street opens

Yahoo's shares have plunged 20% in value in trading in Germany after Microsoft dropped its three-month-old bid to buy the internet firm.

In pre-market US exchanges, Yahoo shares fell 22% and analysts expect them to drop by a similar margin when Wall Street opens for business later.
Here (http://news.bbc.co.uk/2/hi/business/7383700.stm)

[Psykocyber]

How much did they rise when MS first made the bit?

[C.Ron7aldo]

The stock had gained around 50% since Microsoft announced the unsolicited bid on 1 February.

[stocius]

The stock had gained around 50% since Microsoft announced the unsolicited bid on 1 February.So they're +30 overall or are they expected to drop more. I haven't been any news at all, been on the road mostly

[C.Ron7aldo]

So they're +30 overall or are they expected to drop more. I haven't been any news at all, been on the road mostly
yes they are expected to drop more unless Yang come up with an alternative strategy
"Mr Yang is certainly under a lot of pressure now," said Roland Hirschmueller, an equities trader at German brokerage Baader.

"His days are numbered, if he doesn't manage to come [up] with an alternative strategy," he added.

[Frank M]

So they're +30 overall

I think that's not percentage-points compared to the original:
100% -> +50% -> -22% is 1.5*0.78=1.17, or 17% from original.

Maybe this is MS's strategy: let it drop, then buy it at the lower price.

[gallardo]

When it'll drop 30% shareholders will be a little freaked out and since the entire market is already down they will be even more freaked out so they will be more likely to sell during a hostile takeover. MS is playing this by the book, not leaving Yahoo any options here...

[Asgard_thor]

Long Live Microsoft

[highoctane]

They should have taken the money walked away and retired.

[TedShred]

I'm not that familiar with US securities law, but how did this not go to a shareholder's vote? Even if the board didn't call a meeting for that, I thought shareholders (in sufficient numbers) could themselves call special meetings in this kind of circumstance. Or do some of the directors who didn't like the bid themselves have enough shares to decide things?

[Aivas47a]

I'm not that familiar with US securities law, but how did this not go to a shareholder's vote? Even if the board didn't call a meeting for that, I thought shareholders (in sufficient numbers) could themselves call special meetings in this kind of circumstance. Or do some of the directors who didn't like the bid themselves have enough shares to decide things?

Microsoft could take their offer straight to Yahoo shareholders -- that's called a "hostile" bid because it can be made even if the target company management opposes a deal. Then, if enough shareholders accept Microsoft's offered price, MS would own the company and that would be that. But Microsoft has elected not to go this route (at least for now).

[TedShred]

Thanks. So I guess there's no way the shareholders themselves could have forced the issue.

[Aivas47a]

Not as long as Microsoft is only pursuing a "friendly" deal by negotiating with Yahoo management.

At one point Microsoft was also threatening to put up their own candidates for the Yahoo board, which is another way the shareholders could have in effect accepted the offer -- by voting in Microsoft people to Yahoo management, who then would have proceeded to do the deal. But Microsoft also decided not to pursue that approach, so Yahoo's director nominees are running unopposed. So for now there's nothing the Yahoo shareholders can do but sit and wait for something else to happen. :(

[vitaminc]

I think that's not percentage-points compared to the original:
100% -> +50% -> -22% is 1.5*0.78=1.17, or 17% from original.

Maybe this is MS's strategy: let it drop, then buy it at the lower price.

Props for someone who could do math on the forum!!

Agreed on the strategy part, it could be a haggling process. Shareholders will now be more willing to assist M$ if it decides to go on hostile silent tsunami.

[Seraphiel]

I really hope MS owns Yahoo, eventually, so Google can get some real competition. However much I dislike MS, Google is 'more dastardly' and unethical as a company IMHO.

I am very biased though :p:

[Serpentarius]

looks like evil is in progress ...
MS does that normally on competitors ...

[Seraphiel]

looks like evil is in progress ...
MS does that normally on competitors ...

I disagree with the first, but I agree with the latter.

If MS wants Yahoo, they'll eventually get them.

[superbowtie]

just told my friends yesterday that this would happen. I second They should have taken the money and retired.

[Serpentarius]

I disagree with the first, but I agree with the latter.

If MS wants Yahoo, they'll eventually get them.


like they said, A liar knows another liar lying .. same does it to evil ..
my best assumption is .. they're trying to degrading their share value so .. that they'll able to rake it at lower values (which they did suggested their lower priced shares) ... imo as partly evil thinking

[Seraphiel]

like they said, A liar knows another liar lying .. same does it to evil ..
my best assumption is .. they're trying to degrading their share value so .. that they'll able to rake it at lower values (which they did suggested their lower priced shares) ... imo as partly evil thinking

I don't understand :confused:

(english isn't my native language and I feel limited in such discussions, but I still attempt to state my point / opinion, and attempt to understand other people's points / opinions).

Are you saying, that you are evil, because you believe MS is evil?

I agree, though, that MS wants the share price to fall, and then make its hostile bid directly to the shareholders, if that is your point. We have seen the 'good' side with their offer and its subsequent rejecting by Yahoo. MS is done playing 'nice' with Yahoo.

[Indes]

Hey! I disagree with this "evil" talk. MS made them offers and they rejected them so why should ms raise their price, do all of you try to buy a used car and when the seller says no i want another 20k you just agree with him? MS threw their offer on the table and yahoo rejected it, yes Microsoft played this well but yahoo really should've seen this coming. It's their own fault for not realizing that this would happen and that they were getting a good deal especially in light of where the economy is going.