Friday, July 16, 2010

What are the chances of Microsoft acquiring Yahoo!? And how will it affect Microsoft's stock price?

So far, Microsoft seems to be the only company that is in the bidding for Yahoo! Google would love to buy Yahoo!, but the government will not allow it because of anti-trust laws. So, what are the chances that Yahoo! will let themselves be acquired by Microsoft?





And if Microsoft does acquire Yahoo!, how will it affect their (MSFT) stock price? History says that an acquiring firm's stock price will usually fall after an acquisition. However, there were also times when an acquiring firm's stock price would go up as a result of high expectations of an acquisition. Which direction do you think Microsoft's stock price will go if the acquisition of Yahoo! is successful?

What are the chances of Microsoft acquiring Yahoo!? And how will it affect Microsoft's stock price?
Yahoo has rejected Microsoft's offer, so I'd be watching the stocks this week, namely today, to see what's happening.
Reply:The odds Microsoft will acquire them are high, say, 3 or 4 to 1. The current maneuvering is just a gambit by Yahoo's management to try to raise Microsoft's offer.
Reply:all they have to do is sweeten the offer.


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