Prediction: YHOO will drop to $18

Rumors abound that Yahoo is rejecting Microsoft’s $44.6B bid this coming Monday. Insider info reveals the Yahoo’s board members think the $31/share offer is too low.

Others are saying Microsoft’s offer undervalues Yahoo stocks because it did not consider its stake at Yahoo! Japan and China’s Alibaba. The offer should have been in the vicinity of $40/share for it to be seriously considered by Yahoo.

Before the Microsoft offer, Yahoo stocks were dangling around $19/share. It climbed up to as high as $29.83 right after the announcement, a 55% jump.

My prediction come Monday (if the rumor is true and the announcement is made) — Yahoo! stocks will drop to a low of $18 by close of trading day.

We can then all sleep and not think about this MicroHoo! happening anytime soon. My gut tells me Steve Ballmer is very aggressive with this and Microsoft will up the offer to $40. Let’s see how this pans out next week.

Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

https://www.yugatech.com

7 Comments

invest guru says:

16 years ago

Great post, thanks for the info
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Mike Mccullough says:

17 years ago

Was definitely thinking the same thing. Being a US Citizen and having a trading account with ETrade, I was interested in purchasing PUT options in case their stock sank. As seeing how this week progressed and the stock didn’t move an cent, I’m glad I didn’t do anything.

Always great reading your blog. Also, any readers interested in working for a growing software company. Be sure to hit up our website and apply.

-Mike
- Reply
Lexter says:

17 years ago

Wrong prediction. Instead of the price falling, Yahoo’s stock went up by more than 2 percent today. Its price is now at 29.79. Try again.
- Reply
ChrisMo says:

17 years ago

Here is the proof to my previous comment on the undervalue thing. I guess it would be a sleeper deal. I think in some part MS will try to slowly gain shares from the Big Y. I’m excited to see what happens next…
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Me says:

17 years ago

I don’t think the merger will take place in the near future. Google will not allow it and Microsoft will not be able to increase its bid above $35.

http://www.mobilephonenation.com
- Reply
YAEL says:

17 years ago

MicroHoooooo! =)

http://yaelagbayani.i.ph/blogs/yaelagbayani/2008/02/07/tag-youre-it-btch/
- Reply

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