Monday, February 25, 2008
Mergers? Just Say Yes!

First off, I'm not a shareholder in either Yahoo! or Take-Two Interactive.
That's probably not a surprise to you, given that in one case, I have to stand outside corporate headquarters and talk about layoffs, and in the other, I have to talk about controversy over an ultra-violent video game.

Nonetheless, I'm a bit baffled by the roller coaster ride each company is giving its shareholders. In Yahoo's case, Microsoft's offer sent the stock up 50% .. is management really going to say no, and eventually watch its stock price sink back to $19 a share? I think not.

In Take-Two's case, the video game maker, which really has ONE TITLE (albeit a very successful one), "Grand Theft Auto," just got a two billion dollar buyout offer from gaming giant Electronic Arts. That sent its stock price up a Yahoo-like 50% this morning. Then, the company said no.

Now, I understand that playing hard to get is a negotiating tactic in the business world .. often a good one. So, sure, let's see Yahoo and Take-Two get more money for their shareholders. If they can.

But will they really say no?

If you're a shareholder in either company, please let me know how you feel, and how you're leaning, either by commenting in this blog, or via an e-mail (scott.budman@nbc.com)

Are you ready to say yes, or gearing up for a fight?

Posted at 11:37 AM