RSSGates says Microsoft won't raise Yahoo bid
By Scott M. Fulton, III | Published February 19, 2008, 11:34 AM
Whether Microsoft intends to take its case to Yahoo shareholders, and maybe raise its offer in so doing, remains well within the company's rights. Nonetheless, Bill Gates said, at the very least, that a price hike wasn't necessary.
A multitude of press sources presented conflicting reports on Microsoft Chairman Bill Gates' comments following a speech at Stanford University yesterday. What Gates apparently said was that Microsoft has no plans to raise its $31 per share cash/stock bid for Yahoo, and that's the part that Reuters, the Associated Press, and The New York Times agreed upon.
What they disagree upon is what he actually meant -- specifically, whether "no" means "yes." The confusion led MarketWatch this morning to simply report the conflicting stories as they appeared to stand, with the Times backing the AP's account that Microsoft could raise its bid through a proxy campaign with Yahoo's shareholders, and Reuters sticking with Gates' literal meaning.
"We've sent our letter and we've reinforced that we consider that it's a very fair offer," states Reuters' quote of Gates. Other press sources this morning provided similar, though not exact, phraseology.
Perhaps more importantly, though, Reuters quoted Gates as having told reporters that in the end, Microsoft doesn't really need Yahoo to succeed. "We can afford to make big investments in the engineering and marketing that needs to get done," states the Reuters quote. "We will do that with or without Yahoo."
The relative reliability of technology-related news from major press sources has come under question in recent days, especially after multiple sources reported on Saturday that Toshiba had actually announced that day its intention to back down on HD DVD production -- an announcement the company actually made this morning.
The news, such as it was, triggered a selloff in Yahoo shares this morning on the NASDAQ stock exchange, falling 2% in share value by 11:00 am EST to about $29. Last Thursday at mid-day, Yahoo share value peaked at about $30.25 -- very close to the point where Microsoft would probably have had to raise its bid anyway.
So Gates' comments may have had the desired effect: tapering off the public value of Yahoo somewhat below the price Microsoft is willing to pay.
It's almost comical just how desperate Microsoft is at wanting to beat Google or even catch up for that matter. I guess the fact google can make billions almost effortlessly must really get aggravating.
Microsoft spends millions of dollars trying to improve their technology, advertise and everything else, with little gained from it. They can even copy Google's formula right down to the layout of the search, make it just a different enough not to get sued for copyright infringement, still no luck. Now it's not frustrating, its chair throwing time! Right Ballmer?
If I were Google I would just sit back and give Microsoft a little snicker and watch them flush 45 billion down the toilet, while simultaneously eliminating number 2. Then get ready for a hiring frenzy while everyone leaves Yahoo for whoever will hire them.
Google needs to buy someone like Redhat, just to blow Microsoft a little kiss to rub the success in.
It's almost like moby d*** or something.
I would equate this to a great scenario. You have 6 people in a marathon race. You have one guy who is way out in front who's no 1, no where in sight. You are just behind someone else who is number 2, while your number 3. You pay off the other guy who is number 2, now your number 2. But guess what? NO 1, is still way out in front, no where in sight.
What good did you just do? You can't beat number 1, buying no 2 to join up with you did nothing but give you some pride by making you no 2 instead of no 3.
Doh! Just hire a hitman for no 1!
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|What they disagree upon is what he actually meant -- specifically, whether "no" means "yes."
Who do they think Bill Gates is? Bill Clinton - when the real world says "no" - they mean no.
Why would MS want to raise their offer? I'd cut it in half and that would really drop Yahoo's share price because now even MS isn't willing to pony up more than the companies worth.
They'll be buying it at the Dollar store before you know it. :)
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|What Gates apparently said was that Microsoft has no plans to raise its $31 per share cash/stock bid for Yahoo, and that's the part that Reuters, the Associated Press, and The New York Times agreed upon.
Smart. Since the price of Yahoo stock has nowhere to go but down right now, all MS has to do is wait and that $31 per share price will be a bargain for Yahoo. Actually...it already is, only the misguided individuals who run Yahoo refuse to give it up. My opinion, anyway.
3dfx, anyone?
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|The first comment!!! yahooaaa!
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