When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

Citigroup says Microsoft likely to raise Yahoo offer

Citigroup said it is likely Microsoft Corp will raise its $31-per-share offer for Yahoo and upgraded Yahoo shares to "buy" from "hold."

The brokerage also raised its price target on Yahoo's stock to $34 from $31, saying it believed Microsoft remained committed to its offer and "is capable of and willing to" increase that bid to conclude the deal.

"While we continue to see no other competing bidders, we believe Yahoo is aggressively pursuing strategic alternatives," analyst Mark Mahaney said in a note to clients.

One possibility is a tie-up with Time Warner, whereby Time Warner would contribute its online content assets to Yahoo in exchange for a stake, the analyst said.

"We believe this could serve as a forcing function to a higher Microsoft bid."

View: Reuters

Report a problem with article
Next Article

Yahoo supports Google social network applications

Previous Article

DoJ Okays Sirius-XM Merger

Join the conversation!

Login or Sign Up to read and post a comment.

3 Comments - Add comment