Microsoft’s $80 billion (and growing) Yahoo Headache
The buyer in any public-public merger generally sees a stock price hit - they’re offering a premium over what the market thinks the seller is worth, and the market takes that out of the buyer’s hide. But Microsoft lost nearly $40 billion in market cap in the eight trading days since they made their offer. That’s quite a penalty - and one Microsoft likely didn’t plan on dealing with.
Microsoft closed at $32.60 per share on January 31, hours before the Yahoo bid was placed. On Friday, the…
