Microsoft says no thanks to Yahoo

[Valuist]

http://biz.yahoo.com/rb/080503/microsoft_yahoo.html

[chickenhead]

I wasn't expecting that. Very bad for any arbitragers out there....good for google.

[DJofSD]

I ownder if the YHOO shareholders will go after the CEO.

[chickenhead]

there will be lawsuits out the wahoo I'm sure

[JustRalph]

microsoft was about to make a huge mistake. They are lucky somebody came to their senses..............

[Valuist]

Originally Posted by DJofSD

I ownder if the YHOO shareholders will go after the CEO.

I guarantee you they will. YHOO will drop severly tomorrow. Maybe down to $19 or $20.

[DJofSD]

Maybe down to $19 or $20.

Dave, you out there? Is this going to be a repeat of the Bear-Sterns sell off? Another chance to take advantage of an over sold situation?

[chickenhead]

19 puts them at 25x trailing, I'd think they must have plans to fairly quickly unlock some value (either Google outsource, and/or something else)...and they ARE a best of breed general content site. If they do outsource to Google, its good short term, but somewhat of a capitulation (recognition), seems like it puts some severe limits on where they're ultimately headed.

Not my cup of tea, I'd buy MSFT out of this deal.

[DJofSD]

I'd buy MSFT out of this deal.

FM stock of the year.

[Valuist]

I would think MSFT would have to get some bounce out of this. If you figure the market had priced YHOO in after the price fell in early Feb, it can probably get to $34/$35 in the near term.

[formula_2002]

Yahoo! Issues Statement in Response to Microsoft
SUNNYVALE, Calif.--(BUSINESS WIRE)--May 04, 2008 Roy Bostock, Chairman of Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company issued the following statement today in response to Microsoft Corporation's announcement that it has withdrawn its proposal to acquire Yahoo!:

"We remain focused on maximizing shareholder value and pursuing strategic opportunities that position Yahoo! for success and leadership in its markets. From the beginning of this process, our independent board and our management have been steadfast in our belief that Microsoft's offer undervalued the company and we are pleased that so many of our shareholders joined us in expressing that view. Yahoo! is profitable, growing, and executing well on its strategic plan to capture the large opportunities in the relatively young online advertising market. Our solid results for the first quarter of 2008 and increased full year 2008 operating cash flow outlook reflect the progress the company is making. Today, Yahoo! has:

He had to have sold short!!
With 10 minuets to 4:00 pm friday I had a sell order at $29.50... it never got there

[Valuist]

Somebody on the YHOO board posted that "they felt much better knowing they have a stop loss at 28". This person should ask the Bear Stearns shareholders who had stop losses at 50......its not going to do much good when YHOO gaps down to open at 22.