Mark S. Mahaney, Internet analyst at Citi, in a note to clients points out that shares of Yahoo are now trading at a 7 percent discount to the half-cash, half-stock offer from Microsoft. Furthermore, the stock is “now trading at a 13 percent discount to MSFT’s initial $31 offer, which we believe it is reasonable to assume would be re-calibrated.” And if that’s not enough, Yahoo is trading “at a 24 percent discount to a potential sweetened MSFT $34 offer,” Mahaney writes. We agree with him, more or less. Either way you look at it: A lack of other bidders/options basically leaves Yahoo not only (more than a) penny short, but also pound foolish.
The more Yahoo and Microsoft bicker in public and wage their war of words, the more Yahoo — at least as far as the inevitable merging of the two companies goes — loses out financially. Mark S. Mahaney, Internet analyst at Citi, in a note to […]