Well it looks like instead of getting $31 a share from MSFT Jerry Yang decided to hold out for $10.34 per share instead.
If Yahoo shares drop below $10 a share (remember the halcyon days only a few months ago, when the $20-a-share Rubicon was scary?), it creates a very ironic situation.
That being that the company is a true bargain for a buyer interested in scooping up one of the Internet’s still most-trafficked properties, except that not many have the wherewithal in this financial meltdown to pay up.
The problem is that Microsoft will *never* come back to the table with Yang as CEO. MSFT looked like fools having to wine and dine the company and even raised their offer and then Yahoo still rebuffed them. MSFT seemed embarrassed by the whole ordeal and might rather see Yahoo go belly up instead of buying them out.
The thing is, Yang could have sold for 3x what the stock is currently worth and would have actually done right by shareholders. Instead due to his deep, irrational hatred of MSFT he cost his shareholders and employees billions of dollars and -$21 a share loss. I think the Board needs to remove him and get a real turn around expert to either shop them around again, sell off search, or reposition the company for growth. If not we might see things get even worse for Yahoo as ad spending starts to sour in 2009.
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