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%.
MS wont outbid themselves just to please the greedy yahoo board. its going straight to the shareholders.
I think the offer is going to be soon much higher…
Yahoo is greedy.
-Check out my site for making money online. http://mikesmoneyclub.blogspot.com/
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?
FYI: Bear Stearns has raised its target for Yahoo to $45 based on an impending Fed-backed Microsoft bid.
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!
Remind me what Yahoo has done in since microsoft made its bid that would cause microsoft to raise its bid.
Is TechCrunch an investing blog now?
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/
@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.