The interesting question is why a company that claims to know how to program would pay anything for Yahoo, much less a P/E ratio of more than 60. Huh? Sounds l

The interesting question is why a company that claims to know how to program would pay anything for Yahoo, much less a P/E ratio of more than 60. Huh? Sounds like someone needs to cut back on the sauce. We can infer from this offer that Microsoft expects its own programmers to be only 1/2000th as effective, dollar for dollar, as Google’s. We can infer that, if we're near the bottom of a Chivas bottle. The chance of a Yahoo shareholder ever getting more than $31/share, adjusted for inflation and risk, seems remote Hey, I know a place where you can put money down on such predictions. Good luck! Microsoft is to Yahoo as Time Warner is to (correct answer) AOL. Except...the purchase was in the opposite direction. despite the fact that the $31/share bid was higher than Yahoo has typically traded since mid-2006 Here's the thing...if Ballmer logged into his Ameritrade account and started buying YHOO at 10000 shares per second every second until it was all bought up, the share prices would probably hit about 50000 dollars. When Microsoft makes an offer, it's understood that that is equivilent to skyrocketing demand.