With Yahoo’s stock plummeting to $12.29 a share on Friday (October 10), a Yahoo investor is urging Yahoo to sell itself to Microsoft for $22 a share.
Under the proposal by investment fund Mithras Capital, Microsoft would unload Yahoo’s Asian assets and non-search businesses, extract $3 billion worth of cost savings and receive $2.8 billion of tax benefits, meaning the software giant would pay $10.3 billion for Yahoo’s search business.
A quick refresher on Yahoo’s stock:
- Closed at $19.18 per share on January 31st, the day before Microsoft made the offer
- Closed at $28.38 per share (up 47%) on February 1st, the day of the Microsoft offer
- Closed at $24.37 per share on May 5th, the Monday following the failed merge announcement.
- Closed at $23.52 per share on June 12th, the day Yahoo! announced “discussions have concluded”
- Closed at $16.00 per share a week ago (October 3rd)
So at this point Yahoo! has a chance to get a price a little above what their stock was worth prior to this whole hostile take-over offer from Microsoft some 8 months ago. Even better almost $10 a share more than the stock is currently worth. Granted not even close to the initial $31 & $33 per share offers that Yahoo! rejected. Of course this is all dependent on Microsoft’s willingness to consider buying Yahoo!
Source: The Microsoft Blog