Now that Microsoft has dropped its plans to take over Yahoo! (NASDAQ:YHOO) the stock price in pre-trading fell over 21%. The question is: what will happen next?
On the one hand Mr. Yang is absolutely right that a 30$-offer was too low considering that his company was worth more than 31$ in November ‘07. On the other hand the whole market is down since the credit crunch. So, do you really believe Microsoft will let go Yahoo! now? This is MS last chance to jump on the internet after it failed to succeed in its own internet business.
My guess is that it’s just politics: Mr. Ballmer was too stupid to do a simple job but now he still does what MS can do best: to scheme (behind Mr. Yang’s neck). Now Mr. Yang is the jackass and all the shareholders will ask for his head. MS will undoubtedly make a hostile takeover in a few months when the stock will go down further and further and the shareholders will be eager to get rid off the stock for less that 30$ a piece. Microsoft always wins.
My advice: short that stock and take what you can.
Posted by stockwatchers 