Is Microsoft sitting on the sidelines, waiting for the right opportunity?

Question

Corporal Yang insisted on $37.00 per share from Microsoft, Microsoft walked. Now yahoo shares are in the teens, do you think Microsoft will again approach yahoo, but this time go directly to the shareholders with an offer of $25.00 per share, bypassing the board of directors altogether, and getting the shareholders to sell yahoo to them?

This would solve all the problems, wouldn't it?

1. Microsoft gets yahoo, lock, stock and barrel on the cheap

2. Yahoo board of directors are out of jobs

3. Yahoo and Microsoft go after Google

A marriage made in heaven!

what is your take on this?

Answer 1

No. Microsoft isn't going to pursue Yahoo. No, they can't just pick up the stock cheap. They have to comply with the SEC and be approved for the takeover. Microsoft has had plenty of litigation with the SEC and EU in the past. Government entities here and abroad have to determine that any company Mr. Softy acquires wouldn't create a monopoly, among other things. Jerry Yang sure didn't protect the investors when he mismanaged Microsoft's offers! I wouldn't be surprised if  Yang winds up resigning...