Thursday, October 09, 2008

Yahoo Investors Seeking a Savior - WSJ.com

A stark reality check -- but I doubt another Microsoft offer would be anything close to that price level

In January, Microsoft offered a cash-and-stock deal initially valued at $44.6 billion, or $31 a share, for Yahoo and later whispered it would be willing to up that to $33 a share when Yahoo was asking for $37 a share. The initial offer was a 62% premium to where Yahoo shares were before the bid was announced.

At Tuesday's close of $13.76, the same premium would yield a bid of just $22.29 a share, or roughly $31 billion.

Yahoo Investors Seeking a Savior - WSJ.com

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