What was Microsoft thinking?
It’s odd to me that their opening bid was at $31 per share given that the stock was trading at $19. I don’t see why they did not offer a 40% premium – say $27 and give themselves room to negotiate upwards with everyone saving face.
Instead they offered $31 and said it was their final offer, which was not credible. They now will end up paying much more and have to deal with all the bad blood they created in the meantime.
MS was probably thinking back about their offer from the previous year for 40 bucks per share. That and he has to get the major holders interested. Its a time issue. I rather think he has it all planned. RE: take a quick read of James J. Cramers account of playing poker with Ballmer at Harvard. Cramers extremely competitive and it got to a point he could not beat Ballmer. In regards the whole situation I can’t help imagining Steve Ballmer wrestling one of those stone idols on Easter Island. You know how imposing they look?….and how they just sit there not budging?……. Yahoo’s only option was the delay tactic. Delaying is pretty effective considering Microsoft’s need to get on with it if they want to compete with the Goog in the propaganda. Yahoo/Yang sat there like the stone heads. Thus when Yang did not budge Ballmers only recourse was to pull the stone idol down on its stony stationery nose. Now that he’s done that the stock price will drop like a rock on its face. Yang will now get an earful from just about everyone and their grandmother. At which point Yang will be forced back to MS. “how about that 33 bucks a share?” will be the line. Ballmer will most likely go with the 33 or 31 bucks per sheet and get on with the job. I hope he chimps out and does another monkey boy dance when victorious. The world needs this sort of joy!
I think you should comment on Yahoo’s management depriving its shareholders of that 50% return.. Ballmer’s played the game seriously, if I were a Yahoo shareholder i’d be concerned about the childish egotistical management that doesn’t manage for shareholder value but for personal ego.