Thirty minutes before the start of the trading day and Yahoo shares have already tumbled 20%+ percent after talked of a $46.5bn takeover from Microsoft collapsed. Microsoft CEO, Steve Ballmer, pull its 33-a-share offer because Yahoo’s demands for $37 made no sense–end three months of bitter public statements. I guess I’ll have to look for other ways to entertain myself over breakfast.
Meanwhile, Wall Street analysts are sifting through the rubbles and are noting that the biggest winners are AOL and Google who have the opportunity to benefit from a weakened Yahoo.
Mini-Microsoft says that Microsoft’s decision to walk away from the deal actually strengthens his faith in the company. His sentiments that the money could be better spent on other projects are mirrored by Zdnet writer Larry Dignan who also points out that out of this morass comes a recognition of the online properties and really focus internally on strategy. (MSFT shares are up 2% at the time of this article.)
Looking into crystal ball, analysts expect a 30% fall and Microsoft buying a distressed company later this year. Sorry Jerry, well played but don’t mess with Ballmer, the second person to become a billionaire in the US based on stock options received as an employee of a company he neither started or was a relative of the founder.
