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Microsoft didn't end up buying Yahoo, so it's buying itself (basically). The move improves it's stock value (which has decreased quite a bit since the Yahoo deal flopped).
The share prices went up 5.33% after the announcement.
It only recently completed a $40 billion stock buyback.
It's insaine how deep their pockets are!
Certainly is, I wish I had that kind of money.
Investing in itself brings in cash!!Quote:
Originally Posted by ---MAD---
"Fine Yahoo, if we cannot buy you we will buy ourselves!"
Im confused lol, how can you buy yourself?
Did they just play the stockmarket with the shareholders buying and selling shares between themselfs to raise demand and therefore raise share prices?
They just bought back their stock.
What happens is they buy back their own stock, they own most of their stock and then it raises the price of the stock - becuase limited people have it.
Yeah exactly. Less supply, same demand therefore higher share price :).
The laws of supply and demand ;)
Explain this to me in less-complicated-jargon, please?
They buy bits of their own company back off people. The demand for the bits is still the same among the people, but there is less of it to go around, so people are willing to pay more money for bits of Microsoft.
Thats as dumb as I could make it LOL
Supply and Demand... learnt it in Business Eco lol
HANG ON, are we talking about bits of computers? or bits of websites/shares?
What ive understood is this:
Loads of people have shares in Yahoo, microsoft buy up yahoo, so it becomes microsoft and therefore more people want it cus its microsoft, but also.. they buy shares so that there arent as many.... and the demand is the same as it was in the first place... So people are willing to pay alot more per share..?/
OK... ****** explaination please :)
Microsoft have sold shares (bits of the company) to people. They are now buying them back off people to make it so people have to pay more for the few shares still out on the market.