4 ms·
You have to be careful quoting offer prices. Microsoft's 2008 offer for YHOO today would be ~$46.80/share. It is best to look at market cap to determine value
by palebluedot 10y ago
You have to be careful quoting offer prices. Microsoft's 2008 offer for YHOO today would be ~$46.80/share.
It is best to look at market cap to determine value - Microsoft's 2008 offer was $44.6B; Yahoo's current market cap is $41.65B.
The discrepancy from then to now comes from the number of shares outstanding. There are fewer outstanding YHOO shares today than there were in 2008.
- mtrpcic 10y agoDid you also adjust for inflation in there? If not, there's an additional ~10% that can be adjusted for. $44.6B in 2008 would be $49.84B in 2016 USD, an even wider gap.
- lesdeuxmagots 10y agoBut there are fewer shares because yahoo "returned" north of $10B to investors through share buybacks. Not exactly sure how that should be accounted for, but I think relevant to the calculation.
- beambot 10y agoIndeed, for a long-term "buy & hold" investor, the share price is much more meaningful than market cap because of the buybacks.