Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Microsoft Likely to Raise Yahoo Bid: Analyst

Stock upgraded to a buy after $34-per-share offer predicted

By Nick McMaster,  Newser Staff

Posted Mar 25, 2008 2:39 PM CDT

(Newser) – A Citigroup analyst upgraded Yahoo stock to a buy today, predicting that Microsoft will raise its buyout bid from $31 per share to $34, MarketWatch reports. Acquiring Yahoo is the only way for Microsoft to successfully compete with Google for online advertising, said analyst Mark Mahaney, and so “the likelihood of Microsoft walking away from the deal is small."

In light of Google’s recent acquisition of DoubleClick, "No other step could potentially address the scale/liquidity challenge of Microsoft's ad platform," Mahaney continued. Yahoo may flirt with Time Warner or other buyers, MarketWatch notes, but mainly to force Microsoft to beef up its offer; Rupert Murdoch's News Corp. says it's not interested.

Yahoo CEO Jerry Yang in a 2008 photo. A Citigroup analyst today rated Yahoo's stock a buy and predicted that Microsoft will boost its takeover bid to $34 per share.
Yahoo CEO Jerry Yang in a 2008 photo. A Citigroup analyst today rated Yahoo's stock a buy and predicted that Microsoft will boost its takeover bid to $34 per share.   (AP Photo/Paul Sakuma)
Yahoo! co-founder Jerry Yang in a 2007 file photo. A Citigroup analyst today rated Yahoo's stock a buy and predicted that Microsoft will boost its takeover bid to $34 per share.
Yahoo! co-founder Jerry Yang in a 2007 file photo. A Citigroup analyst today rated Yahoo's stock a buy and predicted that Microsoft will boost its takeover bid to $34 per share.   (AP Photo/Paul Sakuma)
The Yahoo Center building is seen in Santa Monica, Calif. in a 2008  photo. A Citigroup analyst today rated Yahoo's stock a buy and predicted Microsoft will boost its takeover bid to $34 per share.
The Yahoo Center building is seen in Santa Monica, Calif. in a 2008 photo. A Citigroup analyst today rated Yahoo's stock a buy and predicted Microsoft will boost its takeover bid to $34 per share.   (AP Photo/Damian Dovarganes, file)
The Yahoo logo is seen in New York in this Thursday, Feb. 14, 2008 file photo.
The Yahoo logo is seen in New York in this Thursday, Feb. 14, 2008 file photo.   (AP Photo/Mark Lennihan, file)
This combination of two photos shows Microsoft founder Bill Gates, left, and Yahoo CEO Jerry Yang.
This combination of two photos shows Microsoft founder Bill Gates, left, and Yahoo CEO Jerry Yang.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

Yahoo Board Meets as Buyout Options Grow

How Yahoo Would Improve Microsoft

Yahoo, Microsoft Execs Meet to Discuss Buyout

Yang Justifies Rejected Microsoft Bid

Microsoft, Yahoo Finally Strike Search Deal


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne