Yahoo shares fell 6% in after-market trading Friday after Reuters reported Microsoft is “evaluating” its $42 billion offer for the Internet company. The news agency cited a person familiar with the matter.
The comments, which suggest Microsoft is considering walking away should Yahoo fail to agree to terms, come on the heels of reports that executives at the two tech titans met this week but failed to reach an agreement on the cash-and-stock offer. Microsoft’s worried that a slowing economy and changes in Yahoo’s business stand to lower its value, Reuters reports.
Yahoo’s top brass is to meet Monday to discuss the situation, CNBC reports. It seems unlikely that either side would let the deal collapse at this point, given Microsoft’s strategic challenges in competing with Google and the apparent failure of Yahoo to attract any rival bidders. But Friday’s late action shows that Yahoo shareholders, who have seen the value of their investment jump 48% since Microsoft unveiled its offer on Feb. 1, are starting to get nervous.
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