I Think Microsoft Is Bluffing on Yahoo

This article has 13 comments:

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  borisb

  Jun 16 05:56 AM
  There is a breakup fee. And an employee severance package that runs up to $2.4 Billion.
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  Yemmi

  Jun 16 07:55 AM
  Sometimes, when you want something really bad, you can't take an entirely objective view on the issue.
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  thedonald11

  Jun 16 09:41 AM

  My Website
  I can't see Icahn taking that kind of hit.
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  pediwent

  Jun 16 09:46 AM
  No kill fee? As borisb points out, there is a $250 million fee for termination in the first 24 months in the event of a change of control. As borisb also points out, there is the severance package, but its actual cost is highly debatable - the $2.4B he mentions is the upper end of the range (essentially if every Yahoo! employee leaves and meets the requirements of the package). That's not to say a deal wouldn't still make sense (especially at $23/share), but there are some additional downside risks to figure into the decision.
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  usbworks

  Jun 16 11:53 AM
  Matthew, Matthew, Matthew.
  
  There's a bug difference in thinking that you know something and knowing that you know something. That's the difference between you and Kara. She doesn't think, she finds out what Microsoft thinks. You on the other hand, are guessing.
  
  Frankly, no gives a damn what you think!
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  Superman

  Jun 16 12:16 PM
  Yes, I agree. This is no less than a poker game where the participants put out bogus signals as well as real ones to trick their opponents into into a complacent or weakened posture and then pounce in for the kill. The stock has tanked again, but if Microsoft quietly steps in again, it can scoop up Yahoo at a greatly reduced price.
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  Carl Icahnt

  Jun 16 01:15 PM
  I noticed that there was no disclosure on the author's stock ownership or lack of. Matthew, are you in at say $26-27/share for a large stake and don't know what to do now? Grasping at hopes are we?
  
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  mulls

  Jun 16 01:18 PM
  Honestly, Seeking Alpha just let's any old moron write "articles" (read: glorified blog post) for them, and then actually tries to package it as informed news.
  
  1) There is a kill fee.
  2) Icahn is in at 24-26 per share - you think he's going to take 23?
  3) The "soul" of it's search business is the search product / algo, not the monetization efforts behind it (arguably the most important part, but it's not the soul).
  
  I want the last 5 minutes of my life back.
•  
  WAKEUP

  Jun 16 01:35 PM
  Yahoo has become Microsoft's tar baby; once MS smacked the tar baby, MS couldn't turn the tar baby loose. Those are Ballmer's hammy hands, you see, stuck to the tar.
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  blah-blah

  Jun 16 02:04 PM
  mulls nailed it - I want those 5 mins back too
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  yahoo
  shareholder

  Jun 16 06:12 PM
  On another note, I just got the stockholder meeting package today. There is a letter from the board of directors warning that "..... the election of Mr. Icahn's slate result in substantial erosion of stockholder value."
  
  What do they call what they have done?? hahahah First turning down 37 a share, then 31, and finally turning down 33 a share and for what, $23.50 a share that it currently is trading at as I type this comment?
  
  I hope the entire board gets replaced and will be putting all of my votes for Icahn's board.
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  Belvedere
  Research

  Jun 16 10:15 PM
  keep in mind that the stock was trading BELOW $20 per share when MSFT made their first offer. It's still trading at a 15% premium to that price, so it's not a logical conclusion that because the stock is trading at $23 it can be had for $23.
  
  Either way, Yang had better start polishing his resume...
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  babuds

  Jun 17 09:42 AM
  "I Think Microsoft Is Bluffing on Yahoo". Yeah, you are right. That old wily fox of a co called MSFT, is holing up and looking for the right time to jump at its prey, after Icahn & co gores it up.