Posted by: Rob Hof on April 4, 2008
Yahoo’s stock is down at least 3% in after-hours trading today after someone close to Microsoft implied to Reuters the software giant might offer up even less than its $31-a-share initial offer. “Worsening market conditions,” you know. Of course, they’ve been worse ever since Microsoft made the offer more than two months ago, so it’s tough to see what has changed very recently.
Just goes to show this is probably little more than the latest twist of a negotiation process leakier than the Titanic. I’m still betting the deal gets done, even at a small premium. But it would appear that Microsoft, which already signaled last week it was getting impatient, thinks that signal didn’t get through strongly enough. Bet it has now.