Yahoo! tries to raise Microsoft’s Bid
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The fact is well known that the well known search Engine Yahoo!, which has been in a Multi Year slide, has been the subject of an unsolicited takeover bid.
Till now, Yahoo! has rejected Microsoft’s bid which is valued at about $43 Billion. The deadline to accept this bid is Saturday, the 26th of April.
However, Yahoo! is hoping that it’s impressive first quareter sales and profits will cause Microsoft to increase it’s bid amount. With a net income of$ 542 million, which is four times what it was a year ago, Yahoo! has gained 37 cents per share.
However, analysts comment that the majority of this increase, has come from Yahoo!’s investment in Alibaba.com, a Chinese E-Commerce website. Without this, Yahoo! has actually lost 11 cents, or 2.6% from the earlier year. This goes against their expectations of a profit of 9 cents per share. Typically analysts like to exclude events that happen only once, since there is no possibility of it being a revenue earner in the future.
Photo Credit: gabofr
In any case, Steve Ballmer, CEO of microsoft says that nothing is going to change Microsoft’s bid. It didn’t make any difference to him whether Yahoo! posted positive or negative gains. An analyst from Cantor Fitzgerald said that there’s probably no way that Yahoo! can fend off Microsoft
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