Will Yahoo Give In To Microsoft?
So Microsoft has finally withdrawn its offer to acquire Yahoo, but the saga is far from over.
On Monday, Yahoo's share prices dropped a whopping 15% to close at $24.37. And shareholders are not happy and many are taking legal action.
Now, it's expected that the board will cave in to shareholders demands and work up a deal with Microsoft. But now that the tables have turned, it's expected that Microsoft will negotiate for a lower price than the offered $33 per share.
Other options include furthering their partnership with Google in outsourcing their search business, buying AOL's advertising business, or resuming business as usual. Earlier today, they announced a partnership with McAfee to launch Site Advisor, which will warn users of malicious websites.
Analysts are still backing the Microsoft deal, pointing out that the offer price is still more than the value added by partnering with other internet entities.
Smart move? Big mistake? We'll have to wait and see.
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