Talks between Microsoft and Yahoo continue as the market closes and the business week comes to an end. Every signal is that the two sides are close to finalizing a deal, somewhere between $33 and $37/share. But are we going to see a deal at all?
If there isn't a friendly deal, is Microsoft going officially for the hostile take over? The market supports Yahoo's claim for "more money" as the stock price rose as much as 11% May 2, 2008 and closed at $28.68.
Analysts are pretty much guessing about a deal to be wrapped up over the weekend and announced on Monday. Their estimate for a cash/stock mix is in the $35 range. Microsoft has signaled that they’ll go as high as $33 this week.
The main reason Microsoft has changed strategies seems to be the willingness of Yahoo to do a search outsourcing deal with Google in the event Microsoft walks away or goes hostile.
The threat is very real, and some experts say that regulatory approval of such a deal would not be as difficult as some have speculated.