and you know what it is? Yes I am referring to the Yahoo and Microsoft’s on going deal. It is arguably one of the most watched and expected deal. In future it would be used as reference. Well what is the big deal? Well as all of you know Microsoft is in the process of buying Yahoo. The unsolicited bid amount is to the tune of $41.7 billion by Microsoft. It comes to about $31 per share which Yahoo feels is undervalued and Microsoft feels is fair.
Many investors in Yahoo have also invested in Microsoft and are interested in the net gain from the deal. Thos who have more shares in Microsoft obviously feel that the company should not overpay while in case of those who have more vested interest in Yahoo feel that it should extract much from Microsoft. In totality almost all of them want the deal to be a success. The scenario is that Microsoft might clinch the deal by sweetening the offer to around $35 per share.
Legg Mason Yahoo’s second largest shareholder feel that the deal should sealed with Microsoft offering around $40 per share to Yahoo, which he feels is fair. Many who cross-hold both the shares feel that Yahoo must extract much from Microsoft to the extent that it does not destroy the benefit that the deal is to offer!
Well this is the story so far, let us see how it continues.