Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, May 9, 2008

Article Excerpt

MICROSOFT CORP. $29.39, Nasdaq symbol MSFT, has dropped its hostile takeover bid for Internet search firm Yahoo! Inc. (Nasdaq symbol YHOO). Microsoft raised its cash-and-stock offer, from $31 a share to $33, but Yahoo demanded at least $37. Microsoft had earlier threatened to present its offer directly to Yahoo’s stockholders. However, a long proxy fight would make it harder for Microsoft to retain Yahoo programmers and other key employees. As well, Yahoo would probably take steps to make itself less desirable to Microsoft. This might include outsourcing some of its Internet search business to rival Google Inc. Microsoft will continue to expand its online businesses through internal growth and smaller acquisitions. That could include increasing its 1.6% stake in privately held Facebook, a social networking Internet site with over 69 million users worldwide. Microsoft could expand its online revenues by integrating its Live search engine and Outlook email program with Facebook. It’s also possible that this week’s drop in Yahoo’s share…