Microsoft Should...

2. Forget the Meetings; Just Up the Ante
Since Yahoo rejected Microsoft's offer Feb. 11, the popular opinion is that Microsoft will lob the ball back into Yahoo's court with a higher bid than the original $31 per share offer. Consensus among financial analysts puts the counteroffer at $35-$40 per share, driving Yahoo's cost over the $50 billion mark. Legg Mason principal Bill Miller said $40 sounds about right. Shareholders tired of Yahoo's underperforming stock will have a tough time looking this gift horse in the mouth.