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    Do you think a merger between Microsoft and Yahoo would add value to the shareholders of both corporations?

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    Do you think a merger between Microsoft and Yahoo would add value to the shareholders of both corporations?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:57 pm ad1c9bdddf
    https://brainmass.com/business/mergers-and-acquisitions/257705

    Solution Preview

    The Microsoft-Yahoo potential merger has become one of the most talked about events in the Internet. If the merger was completed, Yahoo shareholders would be happy with the high amount of $31 per share which is 62% of premium to that Thursday's closing price. It would have turned out to be a relief to the Yahoo shareholders who have witnessed the sliding down of the Yahoo stocks nearly 32% this year.

    For the Microsoft shareholders, having Yahoo would greatly help Microsoft in its attempt to beat Google and Microsoft has always been trying to improve its position through a series of acquisitions. However, since the announcement of the bid, its stocks has lowered in value hence, the Yahoo price of $31 would have meant more dilution for the Microsoft shareholders had the merger/acquisition taken place.

    Lately, the financial condition of Yahoo has not been well. Even if Yahoo has remained to become second to Google ...

    Solution Summary

    The solution discusses one's opinion on the merger between Microsoft and Yahoo, its impact on their shareholders, the financial condition of both corporations, the reasons why a combination of both companies will be more profitable than remaining independent, and the potential pitfalls if the combination becomes less profitable. This solution is 549 words with references.

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