Published in News
Microsoft still pursuing Yahoo
by David Stellmack on27 March 2008
Price per share offer to increase
Citigroup, the brokerage firm involved in the Microsoft-Yahoo proposed acquisition, has raised its price target on Yahoo shares from $31/share to $34/share and also upgraded Yahoo shares from “hold” to “buy” status.
Citigroup also indicated that it believes Microsoft is still firmly committed to its offer to acquire Yahoo and that it is willing to increase its offer to conclude the acquisition.
Yahoo, on the other hand, is not happy with the takeover by Microsoft and is said to be pursuing other alternatives with other investors. Some analysts have hinted that Yahoo could be pursuing a deal with Time Warner, where in exchange for a stake in Yahoo, Time Warner would contribute its online content assets to Yahoo.
Other analysts, including those from Citigroup, predict that Microsoft will prevail, mainly because it is willing and prepared to pay a significantly higher bid price to close the acquisition.