Microsoft made a hostile takeover offer for Yahoo of $44.6 billion to boost its presence in the online services market. How should you trade it?
Billionaire entrepreneur Mark Cuban tells CNBC that he thinks it’s a brilliant move by Microsoft. “Basically it lets them dominate all non-search and social networking on the web. Also it backs Google into a search-only corner.”
I think Microsoft waited and bided their time in a smart way before making this offer, adds Jeff Macke on CNBC’s “Closing Bell.” It seems like Yahoo!is out of better options and I think the best move would be to reluctantly say yes. I don't expect them to get a better offer.
The trade coming out of this is to buy Microsoft , Macke counsels.
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Trader disclosure: On Feb.1, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (YHOO); Najarian Owns (BIIB), (C), (CSCO), (MCD), (MS), (MSFT), (XLF), (YHOO); Najarian Owns (AAPL) Calls, (GOOG) Calls; Finerman Owns (GS), (M); Finerman's Firm Owns (NMX), (PZN), (RTP), (SUN), (VLO), (YHOO), (TSO), (WMT), (JCP), (SKS); Finerman's Firm And Finerman Own (CROX), (FLS), (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Is Short (CME); Seymour Owns (AAPL), (CSCO), (INTC), (MSFT), (S), (MER), (MBI), (GAF); Seygem Asset Management Owns (CX), (ABV), (FMX)