A decline in Microsoft's stock in the days since its Yahoo bid was announced could make doing the deal more expensive, Wall Street analyst-turned blogger Henry Blodget noted Wednesday.
When Microsoft announced the bid on Friday, it offered $31 a share in cash or stock. Specifically, it offered Yahoo shareholders 0.9509 Microsoft shares for each Yahoo share they own.
Right now, both the exchange ratio and the cash price are fixed, meaning Microsoft is offering $31 in cash or roughly $27 in stock. Obviously, all the shareholders would want cash, but Microsoft has already specified that the deal … Read more