logo
  Join        Login             Stock Quote

Will Microsoft be the Next Company to Raise Its Bid to Acquire Yahoo?

 March 25, 2008 11:46 AM
 


After JPMorgan Chase & Co (NYSE: JPM) raised its bid for the stock of The Bear Stearns Companies Inc (NYSE: BSC) from $2 to $10, speculation has began to build that Microsoft Corp (NASDAQ: MSFT) will follow JPMorgan's lead and increase its offer for the shares of Yahoo! Inc (NASDAQ: YHOO).

On Tuesday morning, MarketWatch reported that a financial expert believes that Microsoft should raise its bid to $34 per share.

"We believe that a Yahoo sale to Microsoft -- at a price likely higher than the initial $31 bid -- is the most likely outcome," the MarketWatch online article quote's the Citigroup broker as saying.

[Related -Citigroup Inc (C): A Favorite Bank Stock Is Again A Certifiable Bargain]

The Microsoft bid $44.6 billion was rejected by Yahoo's Board of Directors shortly after it was tendered around Feb 1.

Despite the testy public statements exchanged by the two companies in the bids' immediate aftermath, the evidence shows that the companies have strong board-room connections that could point to the potential for ongoing discussions between the two companies.

NewsVisual created an IntellectSpace Knowledge Map that demonstrates the likelihood of strong personal connections among the members of the two companies' Board of Directors.

[Related -Why it’s time to sell Microsoft]

The first connection runs through the investment-banking firm Morgan Stanley.  Microsoft Director Charles H Noski and Yahoo Chairman Roy Bostock would certainly be acquainted with one another since they both currently serve on Morgan Stanley's board.

Given Bostock's influence within Yahoo, it's highly probably that Microsoft would rely on Noski as a back channel for keeping the buyout negotiations open.

The Knowledge Map also illustrates another potential axis of connection between the Yahoo and Microsoft board rooms that lies through Stanford University.

Although it's unlikely that they were classmates because of their age disparities, Yahoo CEO Jerry Yang, 37, could have a personal connection to Microsoft Directors Reed Hastings, 46, and David F Marquardt, 58, through Stanford's alumni organization or one of the University's other social networks.

Anyone of these personal connections that the Map depicts could serve as a conduit for keeping the talks between Yahoo and Microsoft on life support.

Click here for an interactive and fuller version of this IntellectSpace Knowledge Map.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.