Yahoo Inc.'s stock took a beating Monday after Microsoft Corp. withdrew its $47.5 billion takeover bid, but the punishment wasn't as severe as many analysts anticipated because investors suspect the rivals eventually will renew their mating dance.
Although Microsoft has publicly indicated it will focus on measures besides buying Yahoo in its effort to make its Internet division profitable, several analysts predicted the software maker will revive its offer in the summer or fall if Yahoo can't snap out of a two-year funk that exposed it to an unwanted takeover in the first place.
"Should the frustration of (Yahoo) shareholders come to a boil, we believe (Microsoft) could re-enter the picture, essentially playing the role of the white knight," analyst David Hilal of Friedman, Billings, Ramsey & Co. wrote in a Monday research note.
With similar opinions reverberating through the stock market, Yahoo shares shed $4.30, or 15 percent, to close Monday at $24.37. That wiped out nearly half the gain they made after Microsoft made its bid Jan. 31. The drop left the Sunnyvale-based company's market value about $12.5 billion below Microsoft's last offer.
Yahoo's stock price was $19.18 before Microsoft made its offer.
[Source:The Associated Press]
No comments:
Post a Comment
All comments will be moderate for content, please be patient as your comment will appear as soon as it has been reviewed.
Thank you
Geek-News.Net