MSFT first doled out the carrot and played nice by offering Yahoo! a premium… but nothing: not even “formal” talks.

Rumor is that MSFT is now taking out the stick by whispering that they might re-evaluate (read: reduce) the bid due to worsening market conditions. I don’t think this will happen, but I also don’t think it’s an impossibility (holy double negative; read: a lower bid is possible because it will inflame shareholders considerably and I suspect that some Directors would resign to distance themselves from YHOO’s most senior management, fearing lawsuits - not that resigning would shelter them from lawsuits, of course).

And why is this possible?

Do the math: if GOOG was $747 in November and is now $450… what would Yahoo! be trading at were it not the $31/share offer?

I knew there was a reason I unloaded 87.5% of my shares when I did (at $29 per share).

• Digg this Blog
• Share on Facebook
• WatchMojo on Twitter
• WatchMojo on YouTube
• Add to Favorites
• WatchMojo Newsletter