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Friday 1 February 2008, 2:07 PM
Analysts expect Yahoo to accept Microsoft's offer
The conference call with Microsoft on its plans to acquire Yahoo is winding up and although though we are only hearing from the Microsoft camp at the moment - the impression we are getting from analysts is that Yahoo would be foolish indeed to turn down this
offer.
"Yahoo! lost 30 percent of its share price over the past year," said analyst John Collins of Freeform Dynamics. "But that is all short term stuff, aginst the backdrop of the world market."
Microsoft knows that Yahoo is definitely on the back foot - and its board and shareholders will probably capitulate – the real question is not if Microsoft will seize its prize but what will do with it when it does?
While it is not spelling out how it will integrate Yahoo with its own web operation, Microsoft claims it will make the $44.6bn (£22.4bn) it has bid for the internet portal back in the next couple of years!
"This deal will break even or better in the second financial year," said Microsoft CFO Chris Liddell.
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