I don't get it. Why offer $31 when it's in the market at $19?? Buffett does that all the time.
Why doesn't MSFT buy YHOO thru the stockmarket?
- Thread starter quantumrock
- Start date
Gates should've asked his bestfriend Buffett to broker for him, lol
Maybe they did.
Maybe other companies are in the process of acquiring businesses also.
News is often late.
Maybe other companies are in the process of acquiring businesses also.
News is often late.
Quote from quantumrock:
Gates should've asked his bestfriend Buffett to broker for him, lol
I sense Warren Buffet's influence on this deal. Microsoft management waited until general stock index values are low and the psychology is pessimistic, then they buy a business that represents value to themselves.
I remember reading that Warren Buffet avoids technology investments but Microsoft management is making this bid. Microsoft management has their own opinions.
I recall reading words attributed to J. Paul Getty, wonder if he actually said it: "The time to buy is when there is blood in the street." Well maybe people are scared enough now.
I am just speculating, but if MSFT is eying 100% of all YHOO stock then buying through the market (and reducing float) could end up being a lot more expensive than $31.
Buffet never (?) buys 100% of big public companies. He purchases 5, 6, 10% stakes through the market, over a period of weeks or months in order to limit his impact on price.
It would have taken them years to buy up all the shares and takeover YHOO probably bring the stock price to ~40