Shaun Carter dot Com

Despite Microsoft’s threats of walking away from their $31 per share offer for Yahoo after last weekend, unconfirmed reports from inside the two companies point to a higher offer to come from Microsoft in the near future.

Microsoft CEO Steve Ballmer announced a few days ago that his company would be willing to pay $32-33 per share for the search engine, but newer reports put that number around $35. It appears that Microsoft is now willing to play nice and seek a cooperative deal rather than a hostile takeover as suggessted by Ballmer.

The Option Strangle trade I have on Yahoo is up about 50% right now, but with the announcement of a firm offer over $31 per share should mean a 300+% gain. On the other hand, an announcement that Microsoft is walking away would also prove very profitable.

Hopefully this deal will be settled over the next few days and I can lock in profits on Monday or Tuesday.

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