Search interesting materials

Tuesday, February 05, 2008

Watching markets work - Was Microsoft's offer to buy Yahoo value-destroying for Microsoft shareholders?

A few days ago, I had written about Microsoft's bid for Yahoo, suggesting that this wasn't such a bright idea for shareholders of Microsoft. Maybe it was better for the board of directors of Microsoft to block such empire-building and just pay out the cash to shareholders. The graph above of intra-day stock prices over the last few days (taken from Yahoo finance; click here for the latest data) shows a striking story. (Click on the graph above to see it more clearly). The Microsoft stock price dropped by ~ 10% in response to the takeover bid while the Yahoo stock price went up by ~ 55%.


  1. Ajay...a non related question...why do you think that the INR NDF carry trade has turned negative from a approximately a 2.3% positive carry last week?

  2. this is really a great will help a lot...
    it help to get the investor back in the firm .thanks for such info.


Please note: Comments are moderated. Only civilised conversation is permitted on this blog. Criticism is perfectly okay; uncivilised language is not. We delete any comment which is spam, has personal attacks against anyone, or uses foul language. We delete any comment which does not contribute to the intellectual discussion about the blog article in question.

LaTeX mathematics works. This means that if you want to say $10 you have to say \$10.