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an capall

an capall

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I invest in tech stocks on Nasdaq in my spare time. I have been in and out of YAHOO, profitably, over the years, but not recently. Microsoft bid $33 per share in a $47Bn takeover bid in Jan that Yahoo rejected, indicating their price target of $37. The stock was $19 at the time. When they rejected the bid I think they expected MSFT to go hostile. Today Steve Ballmer, CEO of MSFT, told Yahoo to fkccukk off.

Now as bad decisions go, I think the Yahoo BOD are up there with the Decca execs that told the Beatles they were useless and the generals that told Hitler that invading Russia in the winter would work. There is serious dosh to be made on the Yahoo downside on Monday when the markets open. The stock closed at 28.97 on Friday.

Predictions for close Monday? I think the spread is about 20.30-21.40 Buy or sell?

(Ps..you are now all clones of Google, officially.)
 
Stock will go down to about $20 per share. Wouldn't be at all surprised if Ballmer came back with a take it or leave it $25 hostile takeover. He is like a pitbull and won't take losing lightly. Yahoo have badly overplayed their hand and will struggle to regain credibility to investors and advertisers
 
Like you say it has been widely predicted that yahoo's stock will fall on Monday as investors question the decision-making ability of the executives.

The thing that has surprised me all along is the value that Microsoft put on Yahoo's strategic importance. Sure the internet advertising sector is going to continue to grow, but some of the analyst's predictions look a bit 'dot.com' to me. For the thick end of $50 billion dollars you would like to think that Microsoft could do something off their own bat of equal success to a company that has spectacularly lost its position as market-leader to a more dynamic and franky intelligent rival in google.
 
I think the Yahoo board of director's will have a hard time proving that not selling out to Microsoft was in the best interests of their shareholders.

That said, I think they're right.
 
I imagine Gareth thinks that there may be another route through Google, OB. Goog yields 400% more ad revenue than MSN, and there is talk if an alliance. This however is long term. A merger would never get past the anti trust bodies.
 
MS would attempt to assimilate Yahoo, all of their talent (and there is plenty, just not at the executive level) would quit within a year or so, there'd be a long and difficult migration of all of Yahoo's services to Microsoft's architecture and all that would be left in 5 years time would be a tarnished brand name and a still-stagnant Microsoft share price.

Given that scenario, I'd take my chances of going it alone. It's a hard sell though and I'd imagine there's rather a lot of pissed off Yahoo shareholders right now who'd rather just have the cash, thanks.
 
What makes Yahoo attractive as a takeover proposition is that they offer a rival to Google for online marketing. If Yahoo ditch their own processes and buy in Google service then they effectively become what? A glorified news portal worth $50 billion? It looks like suicide to me.
 
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