Money & Investing - Banks.com

It appears that the deal is dead. Not that there was ever really a deal to begin with. Yahoo! (YHOO) kept insisting that Microsoft (MSFT) pony up an absurd $37 a share for a takeover. And this past weekend some began wondering about whether or not MSFT might mount a hostile bid. In the end, though, Microsoft simply walked away.

However, Microsoft may come to see that it made the correct decision. If Microsoft had bought Yahoo!, it might have come to regret it down the road. After all, Microsoft itself is a rather diverse company that — despite some of the money-losing divisions that it has — remains rather profitable overall. Does it really need to add something to its online division that might just drag it down even more? Although MSFT was doubtless hoping that acquiring YHOO would help boost its online division, this may turn out to instead galvanize better efforts out of Microsoft. As far as MSFT is concerned now, though, the share price is up, and the price options have increased in volatility.

As far as Yahoo is concerned, this may be a bad thing. YHOO plunged before this mornings stock market open, and it continues to fall. Indeed, Yahoo! shareholders are a little upset. Okay, maybe more than a little. After all, many shareholders thought they would wake up this morning to profits on their stock. Instead, the losses are piling up, and who knows if YHOO will recover.

So, while Microsoft might have come to regret buying Yahoo!, it may look as though some shareholders already regret Microsoft’s decision not to.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.

Tags: stock market, stock market news, investing blog, stock market analysis,
YHOO, investments, MSFT