Yahoo Says No: Genius or Suicide?
News wires around the world are reporting that the Yahoo board are planning on rejecting Microsoft’s $42 billion bid of a week ago. Whether this is a display of brave optimism by Yahoo, or simply a play to convince Microsoft (or another potential buyer — did somebody say the G word?) to raise their bid is anyone’s guess.
Typically, whenever a takeover bid is initiated, the buyer’s stock price takes a bit of a hit. However, I bet Ballmer didn’t count on it being quite this much:
Microsoft closed at $32.60 per share on January 31, hours before the Yahoo bid was placed. On Friday, the stock closed at $28.56, a decline of about 13% and the lowest it has been since 2006. That erased just under $38 billion in Microsoft shareholder value.