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Case StudyQn. 1On February 1, 2008, Microsoft launched a bid to takeover Yahoo. This bid came without any request from Yahoo. The company sought to benefit from the Yahoo search engine and its online advertising resources. The action would enable Microsoft to compete favorably with Google. Microsoft gave an offer of $44.6. The figure translated into $31 for each share. It also indicated a 62% increase over the closing price of Yahoo the previous day (Teen & CPA Australia, 2012). The situation made the share price of Yahoo to skyrocket. Yahoo responded in mid-February to the request by Microsoft, rejecting the offer. It stated that Microsoft had devalued its shares. Yahoo indicated that the minimum asking price per share was $40. Later on, Microsoft raised the offer to $33. Yahoo indica...
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