Microsoft Leans Away From Yahoo Buy
ADOTAS – Microsoft Corp. shareholders and employees are increasingly reluctant to commit to the potential $44.6 billion take over of Yahoo and Steve Ballmer is taking their reticence to heart.
Microsoft’s stock has dropped more than 3% in Nasdaq trading since Ballmer made its bid for Yahoo, and his threat of a proxy fight has shifted their attention away from Microsoft’s strengths, according to a Bloomberg News report.
“They need to quit fooling around and get the deal done,” Ken Smith, director of technology invest at Munder Capital Management, which owns Microsoft and Yahoo shares, told Bloomberg. “The fundamentals of Microsoft’s business are tremendous, but this has really capped the stock.”
Microsoft is due to report first quarter earnings today and analysts predict the company will report a 15% decline in net income to $4.21 billion, the report stated. The company’s fight for Yahoo has overshadowed positive news – such as the higher-than-expected demand for PCs (up 15% last quarter).
“The stock’s really not trading on its fundamentals,” Donovan Gow, an American Technology Research analyst in San Francisco, who advises buying the shares, told Bloomberg. “It’s trading much more on the news around the bid.”
Meanwhile, The Wall Street Journal reports that pressure to not buy Yahoo from rank-and-file employees and top execs is getting to Ballmer.
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