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March 25, 2008

Citigroup Raises Yahoo Target To $34 Based On Revised Microsoft Bid

Duncan Riley

12 comments »

Citigroup has raised its Yahoo price target to $34/ share based on their belief that Microsoft will revise its takeover offer.

Citigroup analyst Mark Mahaney said in a research note that “We believe that a Yahoo sale to Microsoft — at a price higher than the initial $31 bid is the most likely outcome” and that the limited combined market share of the combined companies would raise no significant issues with Government regulators.

Infoworld on Mahoney:

Mahaney said Microsoft is unlikely to walk away from the deal because it has yet to make significant inroads in the area of online advertising, especially against market leader Google, despite efforts to do so for the past three to four years. The only way Microsoft could compete with Google would be to acquire Yahoo, the analyst said.

Yahoo shares closed at $28.73 Tuesday, up 4.4%.

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This entry was posted on Tuesday, March 25th, 2008 at 2:50 pm and is filed under Company & Product Profiles. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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  1. TechCrunch Japanese アーカイブ » Citigroup、Microsoftの修正提示価格に基づきYahooの目標価格を$34に

    March 25th, 2008 at 9:41 pm

  2. ONLINE SERVICES/INTERACTIVE MEDIA « Daily Marauder

    March 26th, 2008 at 5:04 pm

Comments

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  1. bs

    March 25th, 2008 at 3:13 pm

    MS wont outbid themselves just to please the greedy yahoo board. its going straight to the shareholders.

  2. Hagia-Sophia.net

    March 25th, 2008 at 3:26 pm

    I think the offer is going to be soon much higher…

  3. Michael B

    March 25th, 2008 at 5:57 pm

    Yahoo is greedy.

    -Check out my site for making money online. http://mikesmoneyclub.blogspot.com/

  4. Loy

    March 25th, 2008 at 6:06 pm

    Microsoft has suffered financial setbacks in last month’s attempted take over of Yahoo!…so why can’t they just walk away from the deal?

  5. Alan Schwartz

    March 25th, 2008 at 8:49 pm

    FYI: Bear Stearns has raised its target for Yahoo to $45 based on an impending Fed-backed Microsoft bid.

  6. Jon

    March 25th, 2008 at 8:58 pm

    This is just nonsense, why would Microsoft best it’s own offer when there is NO competition with the existing bid? Yahoo is in a downward spiral, if anything, Microsoft should reduce it’s bid the longer Yahoo tries to hold on… put the incentive to sell! The shareholders will then put a heck of a lot more pressure on the executives to sell.

    Jon
    http://dreamclue.com … get the message!

  7. JoJo McBlow

    March 25th, 2008 at 10:25 pm

    Remind me what Yahoo has done in since microsoft made its bid that would cause microsoft to raise its bid.

  8. Dan Grossman

    March 25th, 2008 at 10:55 pm

    Is TechCrunch an investing blog now?

  9. Stocks pager

    March 26th, 2008 at 4:45 am

    Yahoo’s rejects was to sharp and i think that MS will prefer to skip increase the offer. With current crisis i don’t see why MS will do this.

    Previous news for offer can find here:
    http://stockspager.com/news/

  10. Et

    March 26th, 2008 at 9:10 am

    @7 Just from TechCrunch alone:
    Yahoo has announced an agreement with Computational Research Laboratories (CRL, a wholly owned subsidiary of Indian conglomerate Tata) to jointly undertake cloud computing research.

    Yahoo filed a presentation detailing its three-year financial plan that management gave to its board of directors in December, before Microsoft’s unsolicited bid.

    Yahoo Buzz proved that a link from Yahoo.com blows away anything Digg or any other competitor can offer.

    Yahoo has announced that it will relocate its European head office from the United Kingdom to Switzerland.

    Yahoo’s embrace of all things open continues today - they are expanding their Open Search Platform.

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