Microsoft willing to wait on Yahoo

By Scott Moritz

In the absence of a bidding war for Yahoo! (YHOO), Microsoft (MSFT) stands pat on its original $42 billion buyout offer.

Seeing no reason to bid against itself, Microsoft looks willing to wait it out, according to a report Tuesday in The Wall Street Journal.

The news comes two weeks after Yahoo argued that it deserved a higher bid in a 37-page presentation that highlighted strong cash flow projections, the comparative value of other Internet deals and the online ad clout the company has here and abroad.

Yahoo shares are up more than 10% since the plea for a higher offer was made public, largely because the company’s financial outlook appeared solid, alleviating concerns that the Net giant was feeling the effects of an economic slowdown.

But no white knight has appeared with a sweeping offer to carry Yahoo away for billions more. Chats with other players like Time Warner (TWX) (the parent of Fortune and CNNMoney.com) and News Corp. (NWS) have lacked the full package that Microsoft offered.

“We still expect Microsoft to raise its bid at the eleventh hour, when the companies are already deep in negotiation, but there is no reason to do it before then,” writes blogger Henry Blodget.

Microsoft seeks Yahoo’s online assets to help it counter the growing threat from Google (GOOG). The Web search giant has targeted Microsoft’s core PC application business with free, often ad-supported network-based software.

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Filed under Microsoft-Yahoo, News Corp., Yahoo, microsoft

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interesting

Posted By Mary, Saddle Brook, NJ : April 1, 2008 5:13 pm

Micrsoft may be realizing that the deal doesn’t even provide the value they initially assumed. If this deal gets done Yahoo! will be nothing more than another brandname for Microsoft. Microsoft truly collaborates with noone.

Posted By Neyo, Heywood, Ohio : April 1, 2008 12:32 pm

i am the antimicrosoft person- if this deal goes through- i will migrate away from msft – no matter what it takes! the anti msft will always exist!! i hate msft…

Posted By jon, denver co : April 1, 2008 11:30 am

This is all information we all already know, except the error in how high yahoo stock rose after the offer. Before the offer is was trading at $18/share after it went to $28/share, that’s a 60% gain, not 10%, Greg

Posted By Greg, Fresno, California : April 1, 2008 11:26 am

“We still expect Microsoft to raise its bid at the eleventh hour, when the companies are already deep in negotiation, but there is no reason to do it before then,” writes blogger Henry Blodget.
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I’m just wondering why any legitimate news organization would be quoting History Major Henry Blodget after all of the damage he was involved in during the bubble. Wasn’t he kicked out of the Financial Industry?

Posted By Anthony, Harrisburg PA : April 1, 2008 11:22 am

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