I feel its slightly on the higher side. The right price for Yahoo would be around $30 billion since they don’t have more than $2billion in cash reserves and their growth is slowing.
Anyways, Yahoo would make the biggest mistake of it’s life if it DOESN’T accept the offer as its almost 60%+ premium on its stock price. The valuations are just too high for Yahoo shareholders to ignore. And Yahoo shareholders will be wise to take Microsoft common stock instead of cash, as the Microsoft resurgence is just beginning. Windows plus Office plus Xbox 360 plus Yahoo minus the rest of ‘Microyahoo crap’ is WAY stronger than Google Search plus Youtube plus AOL minus ‘Google non-search crap’.
Nevertheless, this move would rejuvenate a stagnating online ad market in the US (and the world).
Read the full article here on MSNBC – Microsoft offers $44.6 billion for Yahoo.
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