Yahoo an impasse, Microsoft purchase price will be lower than previously

This IT news is Provided from the SK Net Service Company Ltd

Microsoft billionaire investor Kaeryikan back to the negotiating table, but Yahoo has come to Shanqiongshuijin stage, even if Microsoft will eventually acquire Yahoo, the price will be lower than before.

Microsoft hopes the acquisition of Yahoo's investors finally found a reason to celebrate. Since the company first proposed in early February acquisition offer for Yahoo, Yahoo stock price has fallen by one third. However, Microsoft announced on July 7, the current board of directors if Yahoo were expelled, it is ready to re-acquisition negotiations with Yahoo. Affected by this news, Yahoo shares rose 12 percent to reach 23.91 U.S. dollars per share. Microsoft said in a statement: "Yahoo shareholders if the General Assembly elected the new Board of Directors, we will immediately start negotiations with the new board of directors."

However, even Kaeryikan successfully replace the current board and expelled from Yahoo's Jerry Yang, he may not be made before Microsoft's offer of 33 dollars per share. In fact, the final purchase price may be only 27 U.S. dollars per share, which is Microsoft's initial price of the current value.

Yahoo is not willing to give it before once again put the 47.5 billion U.S. dollars of the purchase price, which is a lot of reasons. Microsoft CEO Steve Ballmer as often said, time is money. Since Microsoft's initial offer of five months, the deteriorating economic situation, the regulatory environment has become better than before.

In addition, Icahn would like to sell out to Yahoo, he simply do not care about Yahoo's strategic plan, in this case, Microsoft in the negotiations certainly occupy a certain advantage. Icahn hope that Microsoft and Yahoo deal can be reached, he did not want Yahoo operate independently, so he repeatedly failed to deal with Microsoft on grounds of the Canadian accused Jerry Yang. Icahn in an open letter to shareholders, he said: "Jerry Yang and the current board of directors will not be able to negotiate with Microsoft, because they have no chance."

According to informed sources said, Microsoft and Icahn did not consult on the transaction price, but Icahn clearly shows his willingness to Microsoft before the Yahoo acquisition price will be sold to Microsoft's wishes. Icahn open letter in the first two painted a Microsoft acquisition of Yahoo may face the risk. Icahn said: "Ballmer the idea is very simple." He explained that Microsoft worried that the Fair due to improper handling by the regulatory agencies to review, thus leading to its loss of a lot of money.

Icahn as one would like to sell to Yahoo Microsoft, Yahoo and not concerned about the development strategy. This is also Yahoo's board of directors Icahn urged investors to vote against the main reasons. Yahoo's board of directors issued a statement: "Icahn leadership of the Board of Directors will not consider Yahoo as well as to the best interests of shareholders." Yahoo's board of directors also pointed out that Icahn and development for Yahoo's no detailed planning, the deal the initiative In the hands of Microsoft. Microsoft May 3 after the withdrawal offer, have repeatedly stressed that it has no intention to buy Yahoo as a whole.

Because of the deteriorating macroeconomic environment, Microsoft can no longer gives a higher offer.

U.S. consumer credit crisis, prices plummeted, and high oil prices and the overall economy into recession are worried about the stock market crash led to the negative factors. Some people think that, because advertisers, especially financial companies to reduce the advertising budget, Yahoo has been the development of a low ebb. That is to say that Yahoo's performance may be lower than expectations, at least it is certainly better prospects for the development of March release second-quarter earnings of the newspaper so bright.

UBS analyst Ben Schachter in the July 7 report that the investors, he considered that Microsoft and Yahoo deal is still possible, but prices are likely to be lower than before. He expected the deal before the purchase price may be 34 U.S. dollars, but now he thought Microsoft's bid can not be more than 33 U.S. dollars. As Microsoft's offer to withdraw after Yahoo shares keep falling, while Yahoo's search and display business is deteriorating and he is expected to Microsoft's acquisition of Yahoo's final price may be 31 U.S. dollars to 33 U.S. dollars between.

However, Schachter predicted the price still optimistic. Yahoo investors to maintain an independent strategic point of no confidence. Yahoo and Google recently reached a cooperation agreement search, there are market rumors that Yahoo is the contemporary Warner's America Online merger negotiations conducted, but the news failed to stop Yahoo fell. Investors have little enthusiasm for other options, which can confidently make Ballmer said Microsoft's offer is most beneficial to the shareholders of Yahoo.