Microsoft (MSFT) CEO Steve Ballmer is making comments that say the comapny has "moved on", and was not thinking about making another bid for Yahoo.
These words were quite the opposite from what Ballmer said last month at a conference, when he had apparently mentioned that a merger between Microsoft and Yahoo "made sense, economically".
Analysts believe there remains some bitterness from Microsoft's being rebuffed by Jerry Yang, and that the company refuses to negotiate with Yahoo as long as Jerry Yang is still in the picture.
The Bottom Line
We think that Yahoo will become an attractive property at a price, and likely if the shares fall to the $7-8 level. There could be other media companies that come into the picture at that point. If Microsoft is seriously interested, a deal at these low price levels would likely get applauded by shareholders. Look at CNET, they were on the block for what seemed like a long time, and then eventually CBS (CBS) stepped up and gave them a decent premium. Watch our for News Corp (NWS-A) to possibly sneak into the picture as well, despite owning MySpace already. Rupert Murdoch has surprised many before.
None of the stocks mentioned above are presently on our ''Recommended'' list.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
Tom Reese/Paul Rubillo, Dividend.com
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