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Skipper - oh don't worry about Microsoft's stock value. Steve Ballmer is a very very very smart businessman. He and his super-genius team have already computed ALL possibilities. They expect to have Microsoft stock dropped when announcing the acquisition of Yahoo. They don't care about loss because they shit money anyway - BILLIONS OF DOLLARS profit compared to some few million bucks loss.
They expect Jerry Yang (Yahoo founder) to say no to the value Microsoft's offering which is why they later threated hostile takeover. Microsoft knows hostile takeover can be very damaging because they may lose Yahoo's key players. Yahoo didn't budge to Microsoft's threat so they had another meeting to talk price again.
At the meeting, Jerry Yang wants $33/share but Microsoft said nope... $40/share but Yang bargained to $37/share. (correct me if I'm wrong about these prices) The deal went kaput and then later... Microsoft withdrew its offer. Guess what happened? Yahoo's stock value went KAPUT - about 20% loss. Now that is extraordinary significant loss!!!! You're talking about SEVERAL HUNDRED MILLION dollars loss! Major shareholders and Yahoo boards are not exactly pleased at all and Jerry Yang could lose his job.
This is exactly same move that Oracle pulled on B.E.A. Systems. Oracle wanted to acquire BEA Systems but there was some resistance and disagreement over price. So Oracle withdrew its offer and BEA's stock became worthless - JUNK STOCK. So BEA apologized and negotiated again with Oracle. This sucks for BEA because the offer was lower than original.
ha ha ha ha poor bastard! so.... yea I suppose Microsoft's pulling similar trick.
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