Yahoo Investor Shows Big Kahunas - Offers Microsoft its $12 Stock for $22

Friday, October 10th, 2008 by Andy Beal

Yahoo Investor Shows Big Kahunas - Offers Microsoft its $12 Stock for $22

There’s no doubt that the current economic meltdown is hurting a lot of businesses. At the sharp end of the Wall Street collapse is Yahoo–its stock is down 34% since the beginning of August.

With its partnership with Google destined to be delayed for eternity, some Yahoo investors are hoping Microsoft might be willing to catch a falling knife. Actually, they’re kind of hoping that Microsoft will look past Yahoo’s $12 share price and be generous with a $22 buyout offer.

A small Yahoo Inc investor proposed a new deal on Thursday to sell the company to Microsoft Corp for $22 a share, a 74 percent premium to the Web pioneer’s current stock price.

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.

Mithras Capital, which owns more than 1.9 million shares, or 0.14 percent, of Yahoo, said in a press release that the proposal allows Microsoft to buy Yahoo’s search business for $2 billion less than it offered in July.

The Government is watching this potential deal closely. If it goes ahead, it’s hoping Microsoft will also take its newly acquired $700 billion debt of its hands for $1 trillion.

(image credit)

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9 comments on “Yahoo Investor Shows Big Kahunas - Offers Microsoft its $12 Stock for $22”

Headland Says:

October 10th, 2008 at 10:02 am

Bigger corporations such as Yahoo and Microsoft will be better poised to weather the storm.
Nicole Price Says:

October 10th, 2008 at 10:07 am

I hope that you are not serious about the last paragraph! Some honcho in Washington, may just think so!

Nicole Price’s last blog post..Discount Lingerie
Utah SEO Pro Says:

October 10th, 2008 at 12:32 pm

I’ll buy $12 for $22 anyday!?

Utah SEO Pro’s last blog post..Link Metrics for SEO
~~Writers Needed- $200/hr~~~ Says:

October 10th, 2008 at 2:46 pm

I don’t take the whole stock thing seriously. I think it is just a ploy because of the upcoming presidential election. While it may be true that we are in a lot of crap, we still have a pretty good economy, despite the job losses. I have been seeing ads for buying stocks everywhere. I’m keeping my money in my pocket. No thanks!
Egadsman Says:

October 10th, 2008 at 7:51 pm

Thank you Mithras Capital for showing what happens when you speak loudly and carry a small, beat-up stick. Ballmer should counter-offer for Yahoo with a stick of gum.
Check Page Rank Says:

October 11th, 2008 at 8:05 am

How embarrassing! And before this they dismissed a better offer from Microsoft. Yahoo shares are also going really down. Have you seen their Alexa rank? Google is set up to take their no 1 spot soon.
Gary Says:

October 12th, 2008 at 2:22 pm

Maybe Andy has some shares in Yahoo too and would like to help bump the deal.
IDoBlogs Says:

October 14th, 2008 at 3:02 pm

By the way, I have a new blog with less than 30 uniques per day I’m selling for just $1.2 million.

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Downloadic Says:

October 18th, 2008 at 5:33 pm

@IdoBlog

What things that make your blog so expensive ??

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