Well I am back with the latest on Microsoft-Yahoo! takeover. Let me ask you something. Have you played a game with high stakes? It seems to me that for once Microsoft has bitten more than it can chew.
In a new development Microsoft Corp has conveyed that it may have to borrow money to fund a portion of its $44.6 billion unsolicited offer for Yahoo. This will be a first in the history of the company which was able to single handedly monopolize the PC industry a few years back.
Instead of drawing down its entire $21 billion cash pile, the software giant may take on some debt to finance the cash portion of its 50-50 stock and cash offer for Yahoo.
This is what Microsoft Chief Financial Officer Chris Liddell said in an annual strategy meeting with analysts "It's likely we're actually going to borrow for the first time. It's going to be a mixture of the cash we have on hand plus debt."
However, he did not divulge on what form of debt Microsoft will look for in the capital markets. He also declined to comment on whether Microsoft was already buying Yahoo stock on the open market.
The lifeline handed out by Microsoft is expected to pay Yahoo shareholders either $31 in cash or 0.9509 of a share of Microsoft common stock.
Well in this high stake game future of Yahoo can make or break. What new twists will this bid take remains to be seen. Till next time….
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