John Paczkowski

Recent Posts by John Paczkowski

Here's a New Offer for You: $29-a-Share After We Withdraw Our Bid and Your Stock Tanks

ballmerfists.jpgIt’s never wise to take an unsolicited buyer’s first offer. But if Yahoo’s waiting for Microsoft to raise its original $31-a-share bid for the company, it’s going to be waiting a long time. Microsoft (MSFT) may be cash-rich and debt-free enough to pay a 62% premium for a declining Internet major. It may be desperate to narrow Google’s lead in the online advertising market. But it’s not certifiable. And it would have to be to offer Yahoo (YHOO) the $40-a-share for which the company’s rumored to be angling–a bid that would be a 109% premium over the $19.18 closing price of Yahoo shares the day before the original offer was announced. Yahoo has about as much chance of getting a $40-a-share offer out of Microsoft as it does reclaiming its long-lost lead in the search market from Google. Just ask Bill Gates.

Interviewed this morning about whether Microsoft was haggling with Yahoo over its rejected hostile buyout, Chairman Bill Gates said that was not the case and gave no indication that the software giant was willing to up its bid. “We sent them a letter and said we think that’s a fair offer,” Gates told the Associated Press. “There’s nothing that’s gone on other than us stating that we think it’s a fair offer. They should take a hard look at it.”

Gates’s comments come amid reports that Microsoft will authorize a proxy fight for Yahoo this week–a move that will cost it quite a bit less than raising its current offer, which would require an additional $1.4 billion for every dollar added.

Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik