Legg Mason owns 80 million shares of Yahoo and is the company's second-largest shareholder. Portfolio manager Bill Miller has met with Microsoft's Steve Ballmer and talked with Jerry Yang since the offer was made. His key conclusions, expressed in a letter to fundholders:
* Microsoft needs to raise its offer.
* Yahoo needs to accept it.
Bill is obviously talking up his book here, but as Yahoo's second largest shareholder he has significant influence. His view reinforces our conviction that a deal will be struck in the low- to mid-$30s in relatively short order.