The AP reports that Microsoft’s price will now exceed its original offer of $44.6 billion ($31/share). Microsoft had lowered the offer to $42.4 billion, and its exact value has fluctuated with stock prices. However, Yahoo stockholders were rumored to be holding out for at least $35/share. Analysts have long predicted that the deal would come once the price came into the $32-35/share range.
Yahoo’s stock price has steadily risen over the course of the day as rumors have persisted that a Microsoft and/or Google deal was imminent.
The New York Times, who originated the story, has a more mixed verdict:
Microsoft, which had threatened to abandon its bid, has increased its offer “by several dollars” per share, one of those involved said.
A deal, however, was not close Friday night, these people said.
Insiders caution that a deal is not a foregone conclusion, but it seems that both sides want to avoid a hostile takeover. Microsoft’s move looks like a clear indicator of that.
News looks as though it will drag on through the weekend. Y’know, if not for the rest of our natural lives.