Filed under: Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO)
I don’t understand what Microsoft (NASDAQ: MSFT) is doing. Last week at this time, investors were celebrating a very nice earnings report, and after years of watching the stock go nowhere, investors had some hope for the rest of ‘08. Now comes today’s announcement that the software maker wants to purchase struggling world wide web search firm Yahoo (NASDAQ: YHOO), for a 60% premium to where Yahoo stock was trading.
I know that Microsoft wants to go after Google (NASDAQ: GOOG). I also know that I’ve an egg on my face for a “buy Google into earnings” post that I wrote yesterday. But why pay 60% more than the market price for a company that admittedly has all kinds of problems and no one else wants?
Just when investors had thought they might just make some money with their Microsoft stock, this news comes along and now, I’m afraid it will be many more years until they see their stock move up.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has no positions in any stock mentioned as of 2/1/08
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