College Finance question about Microsoft's bid for Yahoo?!!?

Question

I have a college finance business essay due. It talks about Microsoft's recent bid for Yahoo, that never went through. As a supposed Microsoft shareholder, would I be glad to hear that Microsoft have bidded for Yahoo for $44.6 billion?

I'm thinking I would be, but the actual market shows that Microsoft's shares continued falling after the announcement of the bid, while Yahoo's rose sharply. Why is that? Please help!!!

Answer 1

Yahoo's stocks have been consistently dropping, weakening Microsoft's advertising foe, and proving that the original offer was fair and not undervalued.