Citigroup: Microsoft being forced to up bid for Yahoo

“Citigroup said it is likely Microsoft Corp. will raise its $31-per-share offer for Yahoo Inc. and upgraded Yahoo shares to ‘buy’ from ‘hold,'” Jennifer Robin Raj reports for Reuters.

Raj reports, “The brokerage also raised its price target on Yahoo’s stock to $34 from $31, saying it believed Microsoft remained committed to its offer and ‘is capable of and willing to’ increase that bid to conclude the deal. ‘While we continue to see no other competing bidders, we believe Yahoo is aggressively pursuing strategic alternatives,’ analyst Mark Mahaney said in a note to clients.”

Full article here.

29 Comments

  1. MS: offers billions for a company that will do nearly nothing for it, and that it will destroy, sucking the very soul out of yahoo like some corporate vampire.

    Apple: changes the world with a phone and a music player and and UNIX OS.

    wow, what a difference.

    while MS spends money hand over fist for ill advised game systems and company buyouts and attempt after attempt to show that they can compete, Apple is kicking butt and taking names.

    ….i should make popcorn to eat while i watch this!

  2. MS apparently does not have enough money to buy Yahoo unless it takes out a load.

    Psssstttt…hey Ballmer….want to borrow a few bucks? Ask Steve Jobs….Apple’s got a spare $18 Bill he can lend you. I am sure he can make you a deal you just can’t refuse…hehehehehe!

  3. Though such a deal doesn’t make sense to me, I’m sure many here will enjoy the sight of Microsoft forced to raise money to fund this deal, then twist itself into knots trying to rebuild the open-source heavy Yahoo to run on Windows. The best will leave for Google or just start their own companies.

    Apple had to reallocate sources from Leopard to the iPhone project. That resulted in a few months delay, but two great projects. Now imagine Microsoft trying to digest Yahoo. Can one say “train wreck”? Pass the popcorn. This will be fun to watch.

  4. I agree with you. It’s really fun to watch M$ make all these blunders in front of the world to see. Sort of like the blind leading the blind (no offense to blind people).

    Maybe it’s time for a new, non-discriminatory catch phrase:

    It’s like Gates leading Ballmer.

  5. Hmmm, read an article a while ago that explained why MS would want Yahoo.

    Yahoo provides / supports a HUGE number of web pages. I dont remember the numbers but its huge. MS is looking to control those pages and more so to control the advertising that goes on those pages. Even the free yahoo e-mail has adverts running on them, guess who gets to decide what ads run on those pages? YEP.

    So now we know why MS wants to buy Yahoo.

    en

  6. The real assets Microsoft has are it’s Windows and Office monopolies and it’s huge war-chest full of ill gotten gains.

    It has screwed up Vista and is about to stop selling XP so there goes that Windows revenue source.

    People are learning that the feature bloated Office Suite they bought in ’97 or ’00 or ’02 or ’04 is good enough and they really do not need to upgrade their personal or business computers to Office ’07 or Office ’08. The Office revenue is slowly fading away.

    Now they are getting ready to piss away that big mountain of cash on the next big thing. Internet add revenue.

    I’m sure MDN could tell them GOOD LUCK WITH THAT! They will be going up against Google, the best in the business, and Microsoft really doesn’t have a clue in this war.

    Microsoft is going to need a lot of cash in a couple of years to ‘innovate’ their way out of the mess they ‘suddenly’ find themselves in and the cupboard will be bare.

    Then the shit will really hit the fan.

    This is going to be fun.

  7. Microsoft is currently in a red giant star mode. They are trying to expand their reach with that soon to be disasterous yahoo buyout. While simultaneously putting out fires on multiple fronts. Eventually the red giant will burn out and turn into a little tiny….irrelevant dwarf star. Still alive and kicking but no one will care.
    Goodbye and good riddance M$!

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