tag:blogger.com,1999:blog-9453798.post7258684279047995787..comments2008-05-06T08:17:28.836-04:00Chad Brandhttp://www.blogger.com/profile/13124194049618873621noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-9453798.post-78710992282016585412008-05-06T08:17:00.000-04:002008-05-06T08:17:00.000-04:00I agree that the odds of a MSFT/YHOO deal proving to be wildly successful several years later are remote. Tech mergers do have far lower success rates than other industries, for some reason. I suspect culture clashes are a big reason.<BR/><BR/>MSFT likely goes to 27/28 if they pay $33-$34 for YHOO. AT that price, you are getting MSFT for ~14x forward earnings. In my view, that is a very cheap price, for a company that can growth profits double digits per year.<BR/><BR/>And that assumes no benefit whatsoever from the YHOO deal. However, the YHOO deal would certainly be accretive to MSFT earnings. Would their market position be any stronger together vs apart? Probably not, but it could still be accretiive to profits due to huge streamlining of duplicate operations, and earnings (not search market share or other industry metrics) drive share prices.<BR/><BR/>As for Sprint, they have been a takeover rumor for years and nothing has really happened, so I don't think that is quite as interesting as what has transpired with MSFT/YHOO over the last couple of years, but that's just a matter of opinion.<BR/><BR/>Actually, since Sprint paid $35B for Nextel a few years ago, perhaps that is a good story given Nextel's demise. I actually owned NXTL back then and they were doing very well. Technology really just passed them by.... walkie talkies don't look so cool now compared to an iPhone...Chad Brandhttp://www.blogger.com/profile/13124194049618873621noreply@blogger.comtag:blogger.com,1999:blog-9453798.post-50324729368336709252008-05-05T22:43:00.000-04:002008-05-05T22:43:00.000-04:00Why should there be an excellent entry point for MSFT if a deal work out?<BR/><BR/>9 out of 10 large mergers don't work well for the accuiring company's stock (I read that somewhere, possibly even here) and if MSFT had a hand at handling online content companies they would have done so with MSN.<BR/><BR/>Yahoo is right now at a point where morale will be low for some time regardless of whether they remain independant or get bought after all.<BR/><BR/>BTW the bottom and bounce of S at the news of repeating DT interest is no less interesting, at least for those of us with positions there :-)<BR/><BR/>Thanks for keeping up.Bobby Kolevnoreply@blogger.com