Yahoo stock exceeds Microsoft offer
Yahoo’s investors are currently better off selling on the open market than accepting Microsoft’s takeover deal, as the value of their shares has risen considerably in the last week.
Microsoft offered to buy Yahoo shares last week at a 60% premium on their market value, but news of a possible takeover has caused the stock to rise beyond the value of the deal.
The company offered over $44 billion for Yahoo, to be paid in a combination of cash and Microsoft stock.
However, news of the attempted takeover has affected the market price of both companies.
Microsoft stock has fallen and Yahoo’s has risen considerably.
This means that owners of Yahoo stock would now theoretically be better off selling their shares to other investors than taking Microsoft’s offer.
The deal is further worsened as the non-cash portion of Microsoft’s offer was fixed at the price of its stock on the day of the announcement, prior to its fall.
However, if the deal falls through it is likely that the value of both companies will level out to previous levels, and Yahoo investors will lose their recent gains.