Opinionated News

Rejecting Microsoft’s not so shabby offer of $47.5bn may have been a big mistake for Yahoo.  Yes they may have financial analysis that says their company may be worth twice as much as is currently being offered by 2010, but they have turned down a current market value offer on a 50-50 gamble!  They may well be right, it may well be worth $80bn by 2010, but there’s no guarantees in the financial world, and consequently it may be worth a good deal less than is currently being offered!  It’s a scenario worthy of Vegas and Yahoo must have nerves of steel to have rejected the offer Microsoft made. 

I have to wonder however if they did so not because they wanted a “projected” offer based on the most positive outlook for the company in coming years, but rather than they thought Microsoft was more financially interested than they’ve turned out to be and would therefore increase their offer again.  If so, they now have a rather tricky situation on their hands as their decision hasn’t just left them no longer being courted by Microsoft, but also reeling from their shares taking a direct hit because of the events that have transpired over this past weekend.

It could be that Microsoft can be tempted back to the table, but I have a feeling that if this happens Yahoo will no longer be controlling the situation!

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