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Who will buy Yahoo?

Current forecast: Still independent by end of '08 (72% chance2%)
Combining all predictions, the current most likely outcome is Still independent by end of '08 with a probability of 72% (up 2% in last 1 day)

Silicon Alley Insider (http://tinyurl.com/5fdm7z) reports that Microsoft is willing to raise its offer for Yahoo to $32-33 per share. Yahoo’s board are reported to want a number in the high 30’s which is all very well given that Yahoo’s stock price will probably drop to the low 20’s if Microsoft walks.

Would you sleep with me for $10m?

It is clear that Yahoo’s position is shifting from “We don’t want to be bought” to “OK, but that isn’t enough”. It is a bit like the old joke where a guy propositions a girl with the line “Would you sleep with me for $10m?”. The girl says well for one night she probably would. The guy then makes the same proposal but for $100. The girl says “What do you think I am, a prostitute!?” to which the guy replies “We’ve already established your status, I’m just trying to negotiate the price!”.

Forecasting a deal

Anyway, Yahoo is currently trading at $27.4 per share (pre-opening) so some investors certainly think that Microsoft could walk away. However more interestingly the forecast chance of Yahoo staying independent is steadily dropping on the Hubdub prediction market. Currently Hubdub predictors are forecasting the percentage chance of Yahoo being independent at the end of 2008 as around 15%. So will it be bye bye Yahoo, hello Microhoo?
 
Forecast history, %
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Make your prediction!

Microsoft
14%
News Corp
3%
Viacom
1%
Time Warner
1%
Other public company
6%
Private equity
4%
Still independent by end of '08
72%
Activity: H$222,842
Question suspends in 17 weeks
All questions are settled by Hubdub according to settlement info provided by the question creator.

Settlement details: This question will be settled on the announcement of the acquisition of Yahoo!, not completion. If an acquisition occurs involving a number of parties then the question will be settled as the lead or the investor taking the largest stake. If there is no clarity as to who the lead investor is then the question will be voided. If no acquisition has occured by the end of 2008, the question will be settled as "Still independent by end of '08".

Suspend date: Wed 31st Dec 11:59pm PST (17 weeks to go)

Initial likelihoods: Microsoft: 10%, News Corp: 5%, Viacom: 2%, Time Warner: 1%, Other public company: 3%, Private equity: 5%, Still independent by end of '08: 74%

Action history:

Created Thu 24th Jan 7:39am PST by nigeleccles[Admin]
Clarified Thu 14th Feb 3:43am PST by nigeleccles[Admin]: Note on News Corp rumours: If News Corp strike a deal with Yahoo but do not acquire then Yahoo would be considered to remain independent
Edited Fri 15th Feb 5:36am PST by nigeleccles[Admin]
Edited Thu 6th Mar 1:20pm PST by andrew
All questions are settled by Hubdub according to settlement info provided by the question creator.

Settlement details: This question will be settled on the announcement of the acquisition of Yahoo!, not completion. If an acquisition occurs involving a number of parties then the question will be settled as the lead or the investor taking the largest stake. If there is no clarity as to who the lead investor is then the question will be voided. If no acquisition has occured by the end of 2008, the question will be settled as "Still independent by end of '08".... read all

 

Predictions (977)

977 predictions

5 days ago
queviltai predicted Still independent by end of '08 (H$20 at 85%)
1 week ago
chryslercraig predicted News Corp (H$50 at 1%)
3 weeks ago
guruzilla predicted Still independent by end of '08 (H$50 at 62%)
3 weeks ago
nigeleccles[Admin] predicted Still independent by end of '08 (H$200 at 55%)
4 weeks ago
yoshi predicted Still independent by end of '08 (H$20 at 46%)
more

Comments (23)

  1 ratel
I don't think yahoo will go so easy, they'll look for someone to come back them up
posted 30 weeks ago
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html

This question is starting to get very interesting (not that Henry Blodget has never been wrong before *ahem*)
posted 29 weeks ago
  3 dollars
you should weigh in on the question @ getsatisfaction by clicking help then the getsatisfaction link the question there is:

"Should Hubdub insiders who settle questions be allowed to make predictions?

To date, Hubdub staff who settle questions have also participated in making predictions on those and other questions. We have strived to be as objective as possible on every settlement and settlements are regularly cross-checked. However some users perceive that this conflict of interest may cause us to incorrectly settle questions for our benefit. We can change the rules to:
(1) No restriction (status quo)
(2) No predicting on questions within their category
(3) No predicting on any questions

Thoughts?
posted 29 weeks ago
  4 ratel
i think option 2 is the most fair
posted 29 weeks ago
  5 ratel
i think option 2 is the most fair
posted 29 weeks ago
i think option 1 is fair, as long as objections to the settlement are looked at by another hubdub staff member. the more people participate, the better, in my humble opinion. it's not like there is any real money involved.
posted 29 weeks ago
  7 rohan
Looking at all the news, looks like Yahoo! wants to remain private and make an alliance with Google.
posted 29 weeks ago
  8 ratel
I'm assuming that would fall under "Still independent..." if its just a deal with Google and they're not bought.
posted 29 weeks ago
http://www.nytimes.com/2008/02/04/technology/04yahoo.html?_r=1&oref=slogin

Looks like Microsoft is still the only game in town.
posted 29 weeks ago
  10 rohan
What I'm saying is that they are remaining independent...
posted 29 weeks ago
  12 mork[Power User]
:D
posted 28 weeks ago
  13 grueller
Rumour and speculation of an overture to AOL (Time Warner):

http://www.bloggingbuyouts.com/2008/02/11/a-yahoo-yhoo-overture-to-aol-twx/
posted 28 weeks ago
  14 scott
Just out that News Corp looking to bid
posted 28 weeks ago
  15 ratel
looking to strike a deal, not necessarily bid to buy them
posted 28 weeks ago
Go NewsCorp Go!
posted 24 weeks ago
  17 mork[Power User]
Please join the HubDubbers Strike! We are protesting the cheater known as "Satyaki" and hubdubs refusal to penalize him for artificially getting himself on the top ladder of the leader boards BY CHEATING!

Please go to these links and post a protest as well and HELP the HubDub Community regain it's integrity!
http://www.hubdub.com/public/contact
^ There's an email form on that page ^
Post your decision at:
http://getsatisfaction.com/hubdub/topics/i_am_on_strike

mork (This user: Is On Strike)
posted 20 weeks ago
  18 ironman288
looks like Microsoft will try a hostile takeover if yahoo doesn't come quietly...
posted 20 weeks ago
  21 jamalpeter
Despite Microsoft's rejection over the weekend this saga is not over. Wait till Yahoo's shareholder weigh in. Now Microsoft will acquire Yahoo for a SONG.

posted 16 weeks ago
  22 swilson[Power User]
Okay, nigeleccles, what if Microsoft acquires just a part of Yahoo?
posted 14 weeks ago
That wouldn't count as an acquisition. That is covered under the question rules item 2.3.4 http://www.hubdub.com/public/goodquestion
posted 14 weeks ago

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