TickerHound

Grudun answered 2 months ago …

The Microsoft-Yahoo story isn't over yet. Expect Microsoft to let Yahoo! shareholders stew for a little while and let people making arbitrage plays to start buying up shares since they dropped. I think Microsoft is talking to the major shareholders directly preparing for a hostile offer. I think we will see a hostile offer at/near the original offer of about $30 a share, then it will be increased right before voting to around the high offer ($32-33/share) which will be happily taken by all the mutual and hedge funds that control the Yahoo! stock. Microsoft even will have the regular employees on their side since they announced they had $1.5 billion for retension bonuses.

Microsoft may make some moves toward AOL or MySpace but AOL is not worth buying(it has a less active userbase) and MySpace is owned by a player(Newscorp) and doesn't help Microsoft augment/replace assests to give it a chance to compete with Google. But these activities will not go anywhere in the near future. But expect Microsoft to be there to buy up the pieces as AOL continues to deteriorate and TimeWarner decides to finally get rid of the liability.