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Originally Posted by Luwalira  It's good that you didn't. If MS had zero interest for Yahoo, the stock would have been as low as it has been the latest years. |
Yes, that's true, but then Sanford Bernstein - a firm that I thought did good equity research - thinks Yahoo is worth $39-45 per share. I just read the article at Reuters, but don't understand it.
The analyst at Bernstein thinks the Microsoft offer at $31 is "astute" because it forces Yahoo management to take steps to unlock its company's value.
Just how the hell is that "astute" for Microsoft? If Microsoft's bid is forcing Yahoo to try to raise its own value, Microsoft would have eventually to pay more to take Yahoo over, wouldn't it? That to me is the opposite of being astute. If this line of twisted thinking holds, I think the price will go higher.
I thought Microsoft overpaid for Facebook. If they start bidding themselves higher and get bamboozled into paying more for Yahoo!, whose stock was at a 52-week-low for a reason, I think a lot of their shareholders will start looking at their investment.