Yahoo (YHOO) To Meet With Board To Come Up With Response to Microsoft (MSFT) Bid & More
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The TechCrunch blog said Yahoo's (Nasdaq: YHOO) board is due to meet today or this weekend to discuss the Microsoft (Nasdaq: MSFT) bid. The report said Yahoo advisors favor doing the deal, despite the fact that some company officials desire a tie-up with Google (Nasdaq: GOOG).
A Yahoo spokeswoman would not comment when the board plans to meet, but said that it is carefully reviewing the offer. Market pundits believe that Microsoft could be persuaded to increase its initial offer.
Yahoo will probably begin negotiating the final terms of the sale to Microsoft or undergo a painful reorganization that would include relinquishing control of its search engine and a big piece of its advertising to rival Google.
In a research report, Citigroup commented on five possible scenarios for Yahoo related to Microsoft's bid.
Scenario #1: YHOO Hits (takes) the $31 Bid. They assign a 20% chance of this happening.
Scenario #2: YHOO Rejects, MSFT Bids Higher and a sale happens. They assign a 40% chance of this happening and said it is the most likely outcome.
Scenario #3: Another Bidder Emerges & Wins. They assign a 20% chance of this happening.
Scenario #4: Deal Blocked By Regulators. They assign a 10% chance of this happening.
Scenario #5: A Yahoo!-Google (Nasdaq: GOOG) Search Outsource Deal. They see a greater chance of this happening than the financial markets realizes, putting a 25% probability of this event.
Another story that hit the wires today is that Capital Research and Management, which is a large investor in both Yahoo and Microsoft, owning more than 11% and 5% respectively, met with Microsoft's CEO Steve Ballmer. The New York Post reported that Capital Research wanted to know how much more Microsoft would pay if Yahoo rejects the initial offer.
A Yahoo spokeswoman would not comment when the board plans to meet, but said that it is carefully reviewing the offer. Market pundits believe that Microsoft could be persuaded to increase its initial offer.
Yahoo will probably begin negotiating the final terms of the sale to Microsoft or undergo a painful reorganization that would include relinquishing control of its search engine and a big piece of its advertising to rival Google.
In a research report, Citigroup commented on five possible scenarios for Yahoo related to Microsoft's bid.
Scenario #1: YHOO Hits (takes) the $31 Bid. They assign a 20% chance of this happening.
Scenario #2: YHOO Rejects, MSFT Bids Higher and a sale happens. They assign a 40% chance of this happening and said it is the most likely outcome.
Scenario #3: Another Bidder Emerges & Wins. They assign a 20% chance of this happening.
Scenario #4: Deal Blocked By Regulators. They assign a 10% chance of this happening.
Scenario #5: A Yahoo!-Google (Nasdaq: GOOG) Search Outsource Deal. They see a greater chance of this happening than the financial markets realizes, putting a 25% probability of this event.
Another story that hit the wires today is that Capital Research and Management, which is a large investor in both Yahoo and Microsoft, owning more than 11% and 5% respectively, met with Microsoft's CEO Steve Ballmer. The New York Post reported that Capital Research wanted to know how much more Microsoft would pay if Yahoo rejects the initial offer.
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