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Microsoft Likely to Raise Yahoo Bid: Analyst

Posted Mar 25, 08 2:39 PM CDT in Technology,  Business 

(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.

Source MarketWatch

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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.   (AP Photo/Paul Sakuma)
This combination of two photos shows Microsoft founder Bill Gates, left, and Yahoo CEO Jerry Yang.   (AP Photo)
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.   (AP Photo/Mark Lennihan, file)
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Microsoft • Yahoo • mergers and acquisitions • online advertising • Jerry Yang • buyout • Time Warner • DoubleClick


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