Yahoo To Reject Microsoft Bid 302
Many outlets are echoing a subscribers-only report in the Wall Street Journal that Yahoo's board has decided to reject Microsoft's takeover offer. The NYTimes offers the only other independent reporting so far confirming this claim. The report says that Yahoo will formally reject the offer in a letter on Monday, since they believe it "massively undervalues" the company. Microsoft offered $31 per share, a 62% premium on the stock price at the time, for Yahoo; but the latter believes that no offer below $40 per share is tenable. The AP has some background on Yahoo's options in responding to the bid.
Re:Excuse me? (Score:4, Informative)
Re:Good for them! (Score:0, Informative)
Ballmer: "Google's not a real company..." (Score:5, Informative)
Quotes:
At that point, Mr. Ballmer picked up a chair and threw it across the room hitting a table in his office. Mr. Ballmer then said: "Fucking Eric Schmidt is a fucking pussy. I'm going to fucking bury that guy, I have done it before, and I will do it again. I'm going to fucking kill Google."
Thereafter, Mr. Ballmer resumed trying to persuade me to stay... Among other things, Mr. Ballmer told me that "Google's not a real company. It's a house of cards."
Quoted from legal papers in a court case brought by Microsoft.
Re:Excuse me? (Score:5, Informative)
The one exception is when insiders sell large blocks of stock -- then the market assumes there must be bad news coming, and the price does drop and remain low. But this effect is informational, and the magnitude of the drop has much less to do with how many shares are dumped onto the market than it does with what the dump says about the insider's opinions (e.g. what proportion of his stock he dumps, and how many other insiders do the same simultaneously).
In any case, the fact that there are "loose shares" dumped onto the market does not by itself affect the price.
Re:Idiots (Score:4, Informative)
We are talking about a deal that instantly infuses into the Yahoo shareholders' bank accounts more money than the company would earn in 20 years. It IS long-term benefit, and they ARE idiots to reject it.
Insiders think it is worth $40? Who the hell are they fooling? Themselves, obviously.
Re:Ballmer: "Google's not a real company..." (Score:1, Informative)
There was talk of them borrowing, but only so they didn't run down nearly all of their cash reserve - they still would have been in positive equity.
Re:Ballmer: "Google's not a real company..." (Score:3, Informative)
It wasn't very long ago that the dot-com bubble burst, I kind of wonder if we're due for another one. I guess if the purchase is profitable enough in the short term, then it would be worth it, but that seems like a pretty unstable strategy to me, and I doubt it's the case for most of these acquisitions.
Re:Frankly, my dear, I don't give a damn. (Score:3, Informative)
--- and a good many more who wish the joke could be retired along with the other long-since-gone-stale running gags that pass for humor on Slashdot.